The Australian Industry Group Australian Performance of Services Index (Australian PSI®) declined falling 2.1 points to 45.6 points (seasonally adjusted) in November 2022 indicating contraction for a third month. Results below 50 points indicate contraction in the Australian PSI®, with lower numbers indicating a stronger rate of contraction.

• The Australian PSI® indicated contraction in the services sector in November, the third month of declining results.
• Results were mixed – business & property services showed the strongest month-on-month decline, and logistics the largest improvement.
• All activity indicators are in contraction. The employment and new orders indicators declined significantly in November, suggesting weakening demand.
• However, capacity utilisation remained elevated, rising to 82.8%. In services, this reflects ongoing tight employment conditions.
• Delivery delays, cumulative interest rate increases, and labour shortages were key concerns for businesses.