The S&P Global Flash Australia Services PMI Business Activity Index rose to 51.8 in June, up from 50.6 in May, signaling the fastest pace of expansion since May 2024. This marked the 17th consecutive month of growth in services activity, supported by a solid rise in new business, particularly from domestic sources. Firms cited greater market interest and an expanding client base as key drivers, though foreign demand weakened sharply, falling at the steepest rate in nearly 3-1/2 years amid fewer international visitors. The real estate and business services sector led growth in both activity and new sales. Employment continued to rise, helping ease backlogs as firms added staff to manage growing workloads. Input costs climbed due to higher fuel, labor, and material expenses, though the pace of cost inflation eased to its lowest level so far this year. Business confidence rose to its highest since May 2022, driven by optimism over stronger demand and potential rate cuts.