The business activity of Australia's private sector expanded in January, with two of the key indicators coming in higher than in the previous month, according to S&P Global's preliminary report released on Thursday.

The activity in the Australian services sector landed above the neutral 50 mark, with the Flash Australia Services PMI Business Activity Index coming in at 50.4, easing from the previous month's figure of 50.6. Meanwhile, despite not making it over the neutral 50 mark, the Manufacturing PMI increased from 47.8 in December to 49.8 in January. The composite PMI, which takes into account the results achieved in the two aforementioned sectors, went up from last month's 50.2 to 50.3.

"The first set of S&P Global Flash Australia PMI data for 2025 brought positive news with Australia's private sector remaining in growth territory amid rising services activity, while manufacturing output stabilized after falling for over two years straight," Jingyi Pan, Economics Associate Director at S&P Global Market Intelligence, said.