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The S&P Global Australia Composite PMI registered a reading of 52.1 in October, slightly down from 52.4 in September. This indicates that while there has been consistent monthly growth over the past year, October’s expansion is the most modest in four months. The increase in new business activities has decelerated, with new export orders dipping back into contraction territory. Although there was a continuation in hiring efforts, the pace was the slowest seen in eight months, which marginally reduced the backlog of work. Despite the deceleration in business activity, staffing levels rose at a tepid rate, which underscores the ongoing demand for services. As a result of uncertain market conditions, business confidence took a further dip, reflecting a more cautious outlook among firms. Additionally, output charges rose at the slowest rate in five years, and a reduction in cost inflation has alleviated some pressure on profit margins. In summary, Australia’s service sector persists in its expansionary phase, albeit at a more subdued pace.