Services outlook rebounds for H2 2026

Accommodation and wholesale trade recorded the strongest business expectations.

The services-sector outlook improved for July to December 2026, recording a net weighted balance of +13%, according to the Department of Statistics.

This marked a rebound from the -4% balance reported for the April-to-September period.

A weighted 19% of firms expected business conditions to improve, whilst 6% anticipated deterioration. The remaining 75% expected conditions to remain unchanged.

All services industries recorded a positive outlook for the next six months.

Accommodation was the most optimistic industry at +28%. Hoteliers expect Formula 1, concerts and seasonal travel demand to support visitor arrivals and occupancy rates.

Wholesale trade followed at +24%, partly reflecting expected enterprise demand for AI-optimised servers, storage and networking equipment.

Recreation, community and personal services recorded a balance of +16%, supported by new preschool openings, demand for AI-related courses and steady healthcare needs.

For Q3 2026, the services sector reported a net weighted operating-revenue forecast of +14%, with all industries expecting improvement.

Accommodation led the revenue outlook at +33%, followed by wholesale trade at +27% and recreation, community and personal services at +20%.

The employment outlook recorded a net weighted balance of +10%. However, a weighted 80% of firms expected staffing levels to remain unchanged.

Administrative and support services had the strongest hiring forecast at +23%, driven by expected demand for cleaning, landscape maintenance and security services.

Accommodation and recreation, community and personal services followed at +21% and +19%, respectively.

The survey covered about 1,600 enterprises and was conducted between June and July. Net weighted balances indicate the expected direction of change and do not represent actual percentage growth.

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