FX.co ★ Australia Services Sector Expansion Eases to 6-Month Low

The S&P Global Australia Services PMI Business Activity Index reported a mild expansion for May, with the headline figure sitting at 50.5, according to preliminary data. This indicates a deceleration in growth from April's figure of 51, marking 2025's slowest growth rate thus far and the lowest since November. The services sector experienced only marginal increases in activity as demand conditions weakened and new order growth diminished. Nonetheless, employment within the sector continued to rise, buoyed by expectations of future improvement and recent surges in new business. Export orders saw a slight comeback, although overall business confidence dipped. Firms noted a reduction in cost pressures, with both input costs and output price inflation easing mid-quarter. However, these rates stayed in line with historical norms, indicating that cost burdens persist despite the recent moderation.