Australia Services Sector Expands In February

(RTTNews) - The services sector in Australia bounced up into expansion territory in February, the latest survey from Markit Economics showed on Thursday with a services PMI score of 57.4.

That's up from 46.6 in January, and it moves back above the boom-or-bust line of 50 that separates expansion from contraction.

The rate of growth was the fastest since May 2021, reflecting a strong recovery of the service sector following January's contraction. The receding of the COVID-19 Omicron wave coupled with the easing of border restrictions spurred the improvement in business confidence and demand in February. This led to business activity expansion at a rate well above the series average. Sub-sector data suggested that consumer services saw the fastest climb in activity.

The survey also showed that the composite index rose to 56.6 in February from 46.7 in January.

Both manufacturing and service sector output returned to growth in February as COVID-19 infections in Australia declined from the January peak. This was supported by strong demand across both sectors. Foreign demand remained lackluster, however, with limited impact from the very recent easing of international border restrictions.