The Australian Industry Group (AiG) released its services purchasing managers' index (PMI) for Australia on the late Tuesday evening. The index slid to 46.3 in December from 48.2 in October. It was the lowest level since November 2014.
A reading above 50 indicates expansion in the sector, while a reading below 50 indicates contraction in the sector.
Four of the five activity sub-indexes were below 50 points in December.
Main contributor to the drop was the sales sub-index, which slid by 6.3 points in December.