FX.co ★ Australia Services PMI Seen Improving in November

The S&P Global Flash Australia Services PMI Business Activity Index has increased to 52.7 in November from 52.5 in October, signifying an accelerated expansion within the service sector. This positive shift is attributed to a surge in new business inflows, driven by improved underlying demand. Nevertheless, growth in new orders and employment has been moderate as companies encountered challenges in finding suitable candidates. A strengthening in export demand for services helped balance out weaker demand for goods exports, resulting in a slight uptick in new export business overall. Business confidence among service providers has reached a five-month high, buoyed by brighter expectations for output growth as firms report better market conditions. Meanwhile, input price inflation rose above October levels due to increased energy, wage, and material costs. Although selling price inflation also increased, it remained modest and well below historical averages.