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- Australian services sector continued to expand in June
Australian services sector continued to expand in June
The Australian Industry Group Australian Performance of Services Index (Australian PSI) fell by 0.2 points to 51.3 points in June, indicating a modest expansion in activity across the services sector for a second consecutive month (results above 50 points indicate expansion, with higher numbers indicating a stronger rate of expansion).
• Of the five activity sub-indexes in the Australian PSI , employment (53.1 points) lifted 4 points into positive territory in June, its first positive reading since August 2015. Sales (52.8 points) picked up 1.1 points while new orders (51.8 points) lost 3.5 points, indicating a positive but slower pace of growth. Stocks (46.6 points) slipped into negative territory (down 4.6 points from May), while deliveries (48.5 points) remained negative, indicating a reduction in inventories and supplier deliveries for the end of the financial year in June.
• Two of the nine services sub-sectors in the Australian PSI® expanded in June (in three month moving averages) and two were stable. Retail trade (66.5 points and a record high for this sub-sector) and finance & insurance (66.8 points) expanded in June. Health &community services (49.4 points) and property & business services (49.4 points) were stable in June. Communication services (44.7 points), wholesale trade (42.0 points), personal & recreational services (39.9 points), hospitality (37.3) and transport & storage (36.2) all contracted, with a relatively faster rate of contraction evident in hospitality and transport.
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