The Australian Industry Group (AiG) released its services purchasing managers' index (PMI) for Australia on the late Monday evening. The index fell to 49.5 in March from 51.8 in February.
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 March.
Main contributor to the decline was sales sub-index.