A jump in pre-Christmas employment has helped Australia's struggling services sector post its strongest reading in six months.
The Australian Industry Group's performance of services index gained one point to 48.9 points in November.
But despite posting the best reading since March, it remains below the key 50 level, separating an expansion from a contraction, where it has been since January 2012.
Ai Group chief executive Innes Willox says the service sector's momentum is slowly improving.
"Confidence appears to be building with the lift in employment in November suggesting more optimistic hiring among services businesses in the lead-up to what is hoped to be a busy Christmas period," he said in a statement.
The employment measure rose 4.7 points to 52.8 points, marking the strongest reading on this score since April 2011.
Deliveries, new orders and sales remained in the contractionary zone.
Across the sub-sectors, only health and community services, on 56 points, and finance and insurance, on 64.6 points, were expanding in November.
Communications had the worst score of 34.8 points, while property and business services, hospitality and recreational services stayed in the shrinking zone.
Mr Willox said it was too early to signal when the services sector will return to a healthy position.
"The sector has not yet made the leap into positive territory and services businesses will be watching sales levels closely over the next few weeks in the hope the year can close on a high note and provide a solid foundation for a more prosperous 2014," he said.
