June’s final PMI reading shows Australia’s services sector returned to growth after May’s contraction, easing recession fears.
Australia’s services sector expanded in June for the first time since April, with the S&P Global Services PMI revised to 50.5 from a preliminary 49.9. The upward adjustment marks a rebound from May’s 48.7, which had indicated contraction, and suggests stabilizing economic activity.
The June reading remains below the long-term average but surpasses consensus estimates, which had anticipated a marginal improvement. Analysts noted the revision reflects stronger-than-expected new business inflows, though employment growth remained subdued.
Markets showed limited reaction, as the data aligned with expectations of a gradual recovery in domestic demand amid easing inflation pressures.