-- Australia's service sector returned to expansionary territory in April, helped by a recovery in business activity following a contraction in March.
The S&P Global Australia Services PMI Business Activity Index rose to 50.7 in April from 46.3 in March.
A reading below 50 denotes a contraction, while a reading above 50 means an expansion.
While activity has increased in 26 of the past 27 months, expansion at the beginning of the second quarter was only slight, according to S&P Global.
An increase in staffing levels in April, the 16th in as many months, aided the expansion of business activity despite the war in the Middle East, S&P said.
Companies increased employment in anticipation of workload improvements in the months ahead, according to the debt watcher.
Higher staffing levels also meant backlogs declined for the second straight month and fell the sharpest since November 2025, the report said.
However, business growth was limited to the information and communication and the consumer services sectors, while a decline was seen in transport and storage, finance and insurance, and real estate and business services, according to the report.
Despite the resumption of business activity growth, companies saw fewer orders in April due to inflationary pressures stemming from the war in the Middle East, S&P said.
Higher fuel costs lifted overall input costs in April, with 43% of those surveyed saying input prices rose in March. Inflation surged sharply compared with the previous month, S&P said.
Expansion plans helped raise optimism in the service sector, with firms also expressing hope that a resolution to the Middle East crisis could help new orders recover, according to S&P.
The S&P Global Australia Composite Output Index jumped to 50.4 in April from a contraction of 46.6 in March, indicating a slight increase in business activity in the private sector.