The Australian Industry Group Australian Performance of Services Index (Australian PSI®) rose by 2.9 points to 51.7 in July, indicating growth and an improvement on the two previous months of deterioration (results above 50 points indicate expansion, with higher numbers indicating a stronger rate of expansion).
Innes Willox, Chief Executive of the national employer association Ai Group, said: "We are seeing a 'two-speed' services sector emerge as businesses contend with labour shortages and rising interest rates. Business & property and personal services grew dramatically in July, while retail & hospitality and logistics fell dramatically. Chronic labour shortages and a super-charged winter spike in absenteeism are large and growing challenges for labour-intensive service industries. And rising interest rates are dampening consumer sentiment, casting a shadow over consumer-facing sectors," Mr Willox said.
Australian PSI® – Key Findings for July 2022:
|
Seasonally adjusted |
Index this month |
Change from last month |
12- month average |
Seasonally adjusted |
Index this month |
Change from last month |
12- month average |
|
Australian PSI® |
51.7 |
2.9 |
50.2 |
Business-oriented services |
|||
|
Sales |
49.3 |
7.4 |
50.7 |
Business & property |
53.4 |
8.9 |
50.8 |
|
Employment |
52.4 |
-2.9 |
50.4 |
Logistics |
46.3 |
-8.9 |
47.9 |
|
New Orders |
50.6 |
1.7 |
50.9 |
Finance & insurance |
na |
na |
na |
|
Supplier deliveries |
47.6 |
5.9 |
48.8 |
||||
|
Finished stocks |
64.7 |
4.3 |
49.0 |
Consumer-oriented services |
|||
|
Capacity utilisation (%) |
80.3 |
0.3 |
76.7 |
Retail trade & hospitality |
57.3 |
-20.7 |
47.9 |
|
Prices and wages |
Health & education |
44.4 |
-5.6 |
51.8 |
|||
|
Input prices |
74.3 |
5.3 |
64.3 |
Personal, recreational & other |
61.9 |
16.3 |
53.1 |
|
Selling prices |
63.4 |
-3.8 |
49.7 |
||||
|
Average wages |
68.9 |
1.2 |
57.4 |
Australian PSI® (trend) |
50.0 |
-1.3 |
50.1 |
Results above 50 points indicate expansion. Data is seasonally adjusted; trend data in the Australian PSI® calculated with a Henderson 13-month filter formula.
na: Results are not available for this sector in this period due to unusually low survey response numbers. All sectors are included in the total results.
NOW AVAILABLE:
Click here for full list of 2022 release dates for the Australian PSI®
Background: The Ai Group Australian PSI® is a leading indicator of services activity in the Australian economy. It is a seasonally adjusted national composite index based on the diffusion indices for sales, orders/new business, deliveries, inventories and employment with varying weights. An Australian PSI® reading above 50 points indicates that services activity is generally expanding; below 50, that it is declining. The distance from 50 is indicative of the strength of the expansion or decline. Results are based on a sample of around 200 companies each month.
Media Enquiries: Tony Melville: 0419 190 347
