FX.co ★ Australia Services PMI Continues to Expand in March

The S&P Global Australia Services PMI Business Activity Index climbed to 51.6 in March 2025, up from 50.8 in February, reaching its highest level in seven months. This uptick in services activity was largely fueled by a notable surge in new business, which grew at its most rapid pace in nearly three years. Key factors such as improved economic conditions, successful marketing efforts, and heightened client interest were identified as primary drivers of the increased demand. Nevertheless, export business experienced a slight decline, primarily due to disruptions caused by Cyclone Alfred, including its adverse effects on tourism. Furthermore, weather-related disturbances led to an uptick in outstanding business for the first time since April of the previous year. Employment within the sector continued on an upward trend, bolstered by heightened levels of current and anticipated future activity. Despite a promising sales outlook for the months ahead, overall sentiment dipped due to geopolitical concerns, reaching its lowest level since November.