The employment and backlog data together suggest capacity pressure is beginning to build, which could feed into wage and price dynamics if new orders continue at this pace. ---Earlier:Australia's service sector recovery gathered pace in July as new orders returned to growth, even as firms pushed through faster price increases to rebuild margins. The seasonally adjusted Services Business Activity Index rose to 53.6 from 50.5 in June, marking a second consecutive monthly increase in output and the strongest reading since the start of the year's second half. The expansion in business activity was centred on the real estate and business services, and information and communication categories, while transport and storage remained under pressure. For the first time in six months, output increased across both monitored sectors as manufacturing joined services in returning to growth.