Australia's Judo Bank Services Purchasing Managers Index (PMI) Business Activity index fell to 52.5 MoM in May, down from the previous month's 53.6, marking in a second straight month of declines.
Despite the easing headline figure, Services activity chalked in a fourth consecutive month of expansion in serivces business activity, albeit on a softer tone.
As Matthew De Pasquale, Economist at Judo Bank noted, "The complete May PMI release confirms findings from the Flash report earlier this month. Business conditions have improved for four consecutive months, the services sector is driving the rise, and employment growth remained strong throughout the month."
Market reaction
AUD/USD is grinding to a halt near 0.6650 in the early Wednesday market session after flubbing a bullish attempt to grab the 0.6700 handle on Tuesday.
About Australia's Judo Bank 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.
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