Australia Services PMI Expansion Slows in September

The S&P Global Flash Australia Services PMI Business Activity Index showed a modest slowdown to 52 in September, from 55.8 in August, as new business expansion slowing to its weakest pace in three months. The moderation reflected weaker demand conditions, including a renewed fall in export orders, which weighed on overall activity. Business confidence in the sector also slipped to the lowest level in a year, as service providers grew less optimistic about output growth in the year ahead. On the cost side, input prices in services continued to rise but at a slower pace, helping to offset stronger inflationary pressures elsewhere in the economy. Meanwhile, selling price inflation in the services sector eased to a three-month low, as firms faced limited capacity to pass on higher costs amid heightened competition.