FX.co ★ Australia Services Growth Revised Upward

The S&P Global Australia Services PMI Business Activity Index slipped to 51.9 in September 2026 from 53.2 in August, though it exceeded the preliminary estimate of 51.4. This marked a fourth consecutive month of expansion, but growth slowed to its weakest pace in three months as new business rose at the softest rate in the current three‑month upturn.

Export activity improved, with overseas demand increasing for the first time in five months, albeit only marginally. Employment declined for the first time since May, as firms pointed to weaker new orders and cost‑containment efforts. Meanwhile, backlogs of work continued to rise, extending the current sequence of accumulation to three months.

On the price front, input cost inflation accelerated, driven by higher fuel, labour and other operating expenses. Output price inflation also picked up, with firms passing increased costs on to customers. Both input and output price inflation remained above their respective long‑run averages.

Business confidence dropped to a three‑month low, with some firms voicing concerns about the broader economic outlook and future sales.