SYDNEY, Aug 2 (Reuters) - Activity in Australia's service sector continued to run at a brisk pace in July, with a rise in new business to three-month highs encouraging firms to take on more workers, a survey showed on Wednesday.
The Commonwealth Bank IHS Markit Services Business Activity Index dipped just a touch to 57.0 in July, from 57.5 in June, to remain well above the 50 threshold between expansion and contraction.
Its measure of new business pushed up to 57.7 in July, while employment jumped more than 3 points to 55.5. The service sector is by far the biggest employer in the Australian economy.
"The dominant services sector remains in very good shape. Not only are services generating strong growth in activity and jobs, but these trends are expected to continue," said CBA chief economist Michael Blythe.
Nearly 31 percent of the survey panel reported a rise in activity in July, compared with around 17 percent that recorded a fall. A number of companies commented on the start-up of new projects and increased marketing activity, the survey found.