The S&P Global Flash Australia Services PMI Business Activity Index rose to 55.8 in August, up from 54.1 in July, signaling the strongest expansion in over three years. The growth was driven by a sharp rise in new business, including the fastest increase in exports since June 2022. Improved demand encouraged companies to hire additional staff at the fastest pace since April, helping to reduce outstanding work, although backlogs remained only slightly lower. Business confidence strengthened as firms anticipated continued positive sales growth in the months ahead. On the cost side, input prices and output charges both increased due to higher expenses for supplies, fuel, and labor, though inflation rates eased from July. Promotional efforts and rising client interest supported the strong inflows of new orders. Overall, the data point to a resilient services sector with robust domestic and export demand.