The Australian Industry Group (AiG) released its services purchasing managers' index (PMI) for Australia on the late Thursday evening. The index rose to 51.5 in May from 49.7 in April.
A reading above 50 indicates expansion in the sector, while a reading below 50 indicates contraction in the sector.
Three of the five activity sub-indexes were above 50 points in May. The increase was mainly driven by rises in new orders, sales and stock levels.