Australia’s Judo Bank Services Purchasing Managers Index rose to a ten-month high of 53.1 in February, climbing back above the 50.0 contractionary level and climbing over the previous print of 49.1.
The Judo Bank Australian Composite PMI also climbed to 52.1 versus the last 49.0, a nine-month high.
Services activity rose for the first time in five months, and at its fastest rate since last April, according to S&P Global.
According to Matthew De Pasquale, Economist at Judo Bank:
The February Services PMI indicates that the sector has reached a soft landing in 2023 and is now experiencing a resurgence in activity in early 2024. Though the resilience in business activity is good for economic growth and employment, it raises doubts about the likelihood that inflation will back to target under the RBA’s forecast timeline.
About the S&P Global Judo Bank Australia Services PMI
The Services Purchasing Managers Index (PMI), released on a monthly basis by Judo Bank and S&P Global, is a leading indicator gauging business activity in Australia’s services sector. The data is derived from surveys of senior executives at private-sector companies from the services sector. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), employment and inflation. A reading above 50 indicates that the services economy is generally expanding, a bullish sign for the Australian Dollar (AUD). Meanwhile, a reading below 50 signals that activity among service providers is generally declining, which is seen as bearish for AUD.
Source: https://www.fxstreet.com/news/australias-judo-bank-services-pmi-improves-to-531-in-february-up-from-the-last-491-202403042207