IHS Markit PMIs for Australia

Services 58.0

  • preliminary 58.2 from prior 58.8

Composite 58.0 also

  • preliminary 58.1 from prior 58.8

'Key findings' from the report:

  • Business activity and demand sustain noticeable growth
  • Sharpest increase in employment on record
  • Cost inflation accelerates to series high

Solid expansion, jobs up .. good signs in the report.

Comments from Markit:

  • "Australia's service sector sustained a strong rate of expansion in May with both demand and business activity growing at a healthy pace. The improvement in economic conditions can be seen providing firms with better confidence to continue hiring at a record pace.
  • "Backlogs meanwhile continued to build despite the increase in operating capacity. Anecdotally, some service providers are looking to rebuild their headcount to pre COVID-19 levels but a few are citing difficulties in finding new employees.
  • "Business confidence remained strong in May, even as price inflation accelerated, with firms anticipating further recovery from the COVID-19 pandemic. The latest developments surrounding Melbourne's lockdown may however be one to keep a close eye on."