The S&P Global Australia Services PMI Business Activity Index fell to 48.7 in May 2026 from 50.7 in April, revised slightly higher from initial estimates of a 47.7 contraction but marked the second decline in activity in the past three months. The downturn was driven by weaker demand, market uncertainty, and rising fuel costs linked to the ongoing Middle East conflict, which weighed on business conditions across several industries. New business declined for a third straight month and at the fastest pace in nearly two-and-a-half years, as higher prices and rising interest rates dampened demand. Export orders also fell, while companies reduced staffing levels for the first time since January 2025 amid softer workloads. Inflationary pressures remained elevated, with fuel costs continuing to push up input prices and prompting firms to pass higher expenses on to customers through increased selling prices. Meanwhile, business confidence weakened to its lowest level since November 2023. source: S&P Global

Services PMI in Australia decreased to 48.70 points in May from 50.70 points in April of 2026. Services PMI in Australia averaged 51.64 points from 2016 until 2026, reaching an all time high of 58.80 points in April of 2021 and a record low of 19.50 points in April of 2020. This page provides the latest reported value for - Australia Performance Services Index - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Services PMI in Australia decreased to 48.70 points in May from 50.70 points in April of 2026. Services PMI in Australia is expected to be 49.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Australia S&P Global Services PMI is projected to trend around 52.60 points in 2027 and 53.00 points in 2028, according to our econometric models.



Related Last Previous Unit Reference
Bankruptcies 1104.00 1102.00 Companies May 2026
Building Capital Expenditure -3.80 2.50 percent Mar 2026
NAB Business Confidence -14.00 -23.00 points May 2026
Business Inventories 0.50 -0.10 percent Mar 2026
Capacity Utilization 75.70 77.70 percent May 2026
Passenger Car Sales 12605.00 11005.00 Units May 2026
Changes in Inventories 675.00 897.00 AUD Million Mar 2026
Composite Leading Indicator 100.85 100.81 points May 2026
Company Gross Profits 132650.00 134455.00 AUD Million Mar 2026
Corruption Index 76.00 77.00 Points Dec 2025
Corruption Rank 12.00 10.00 Dec 2025
Industrial Production 2.50 2.80 percent Mar 2026
Industrial Production Mom -0.60 1.70 percent Mar 2026
Ai Group Industry Index -26.50 -25.50 points May 2026
Ai Group Services Index -19.60 -24.40 points May 2026
Ai Group Construction Index -9.90 -19.30 points May 2026
Ai Group Manufacturing Index -22.40 -27.90 points May 2026
Westpac Leading Index MoM 0.00 0.10 percent May 2026
Manufacturing Production 3.20 1.10 percent Mar 2026
Mining Production 3.10 4.00 percent Mar 2026
New Orders 35.00 23.00 points Dec 2025
Plant Machinery Capital Expenditure 18.10 -1.30 percent Mar 2026
Private Capital Expenditure 6.50 0.70 percent Mar 2026
Small Business Sentiment -2.00 -8.00 points Sep 2025
New Vehicle Sales 100206.00 92591.00 Units May 2026


Australia S&P Global Services PMI
The S&P Global Australia Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies. The sectors covered include consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services. The headline figure is the Services Business Activity Index. This is a diffusion index calculated from a question that asks for changes in the volume of business activity compared with one month previously. The Services Business Activity Index is comparable to the Manufacturing Output Index. The index varies between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. This is only a limited sample of PMI headline data displayed on the Customer’s service, under licence from S&P Global. Full historic PMI headline data and all other PMI sub-index data and histories are available on subscription from S&P Global. Contact economics@spglobal.com for more details.

News Stream
Australia Services Sector Contracts in May
The S&P Global Australia Services PMI Business Activity Index fell to 48.7 in May 2026 from 50.7 in April, revised slightly higher from initial estimates of a 47.7 contraction but marked the second decline in activity in the past three months. The downturn was driven by weaker demand, market uncertainty, and rising fuel costs linked to the ongoing Middle East conflict, which weighed on business conditions across several industries. New business declined for a third straight month and at the fastest pace in nearly two-and-a-half years, as higher prices and rising interest rates dampened demand. Export orders also fell, while companies reduced staffing levels for the first time since January 2025 amid softer workloads. Inflationary pressures remained elevated, with fuel costs continuing to push up input prices and prompting firms to pass higher expenses on to customers through increased selling prices. Meanwhile, business confidence weakened to its lowest level since November 2023.
2026-06-02
Australia Services Sector Marks Second Drop in Three Months
The S&P Global Australia Services PMI Business Activity Index fell to 47.7 in May 2026 from a final 50.7 in the previous month, preliminary estimates showed. The reading marked the second contraction in three months for the services sector, as the ongoing Middle East conflict continued to disrupt business conditions and weigh on demand. Activity also fell below the sector’s long-run growth trend, with new orders declining solidly amid a weaker demand environment. In response, firms returned to workforce cutbacks after prior signs of stabilization. On the inflation front, cost pressures intensified further, although the pace of increase remained considerably softer than in the manufacturing sector.
2026-05-20
Australia Services Sector Growth Revised Higher
The S&P Global Australia Services PMI Business Activity Index was revised slightly higher to 50.7 in April 2026 from 50.3 in the preliminary estimate, and up from a final 46.3 in March, which had marked the weakest reading since November 2023. A rebound in services activity was supported by sustained job creation, with firms reporting improved business conditions. However, new orders continued to fall as demand remained subdued amid higher fuel costs due to the war in the Middle East. Despite weak demand, new business from abroad ticked higher, with growth in April following a sharp decline in March. On prices, input cost inflation accelerated to the fastest pace since August 2022, driven by fuel price fluctuations. As a result, firms raised selling prices at the fastest rate since January 2023, as higher fuel costs were passed through to customers. Finally, business sentiment was unchanged from that seen in March, remaining relatively muted compared to the long-run average.
2026-05-04