Australia services PMI hits six-month high of 53.6 as new orders return

AI summary

<p class="font-claude-response-body break-words whitespace-normal" dir="ltr">The renewed rise in new orders, the first in five months, alongside the composite index's jump to its fastest expansion pace since January, points to a domestic recovery gaining genuine traction rather than a one-off bounce. That said, the reacceleration in output price inflation, even as input cost growth eased to a five-month low, suggests firms are using the improved demand backdrop to rebuild margins, a dynamic that could keep services inflation stickier than the headline cost figures alone would imply. Business confidence recovering to its strongest level since before the Middle East conflict began in February also points to a more constructive outlook among firms, though the survey's own commentary flags that geopolitical uncertainty still clouds the durability of the upturn. The employment and backlog data together suggest capacity pressure is beginning to build, which could feed into wage and price dynamics if new orders continue at this pace.</p><p class="font-claude-response-body break-words whitespace-normal" dir="ltr">---</p><p class="font-claude-response-body break-words whitespace-normal" dir="ltr">Earlier:</p><ul><li><a href="https://investinglive.com/news/australia-manufacturing-pmi-hits-52-0-as-output-growth-returns-in-july/" rel="follow">Australia manufacturing PMI hits 52.0 as output growth returns in July</a></li></ul><p class="font-claude-response-body break-words whitespace-norm