The Australian Industry Group (AiG) released its services purchasing managers' index (PMI) for Australia on the late Wednesday evening. The index rose to 51.8 in February from 48.4 in January.
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 above 50 points in February.
Main contributor to the rise were sales and new orders sub-indexes.