The Australian Industry Group Australian Performance of Services Index (Australian PSI®) fell by 0.4 points to 48.8 in June, indicating mild contraction for a second month and continuing the deterioration from the strong results seen earlier in the year (results below 50 points indicate contraction, with lower numbers indicating a stronger rate of contraction).
Innes Willox, Chief Executive of the national employer association Ai Group, said: "With interest rates rising for the first time in a decade, we have seen a 'two-speed' services sector emerge in June. Industries which are sensitive to sentiment changes – such as business & property, and personal & recreational services – declined into contraction. Less interest-rate-exposed services remained in a growth phase. With the RBA increasing rates by 50 basis points again this week, we would expect this two-speed pattern to gather pace," Mr Willox said.
Australian PSI® – Key Findings for June 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® |
48.8 |
-0.4 |
50.2 |
Business-oriented services |
|||
|
Sales |
41.9 |
-8.8 |
50.7 |
Business & property |
44.5 |
-1.2 |
50.8 |
|
Employment |
55.3 |
7.9 |
50.4 |
Logistics |
55.2 |
-4.6 |
47.9 |
|
New Orders |
48.9 |
-0.8 |
50.9 |
Finance & insurance |
na |
na |
na |
|
Supplier deliveries |
41.7 |
-7.2 |
48.8 |
||||
|
Finished stocks |
60.4 |
11.4 |
49.0 |
Consumer-oriented services |
|||
|
Capacity utilisation (%) |
80.0 |
-2.3 |
76.7 |
Retail trade & hospitality |
78.0 |
20.1 |
47.9 |
|
Prices and wages |
Health & education |
50.0 |
6.2 |
51.9 |
|||
|
Input prices |
69.0 |
0.3 |
64.2 |
Personal, recreational & other |
45.6 |
-13.6 |
53.1 |
|
Selling prices |
67.2 |
5.3 |
49.6 |
||||
|
Average wages |
67.7 |
10.3 |
57.3 |
Australian PSI® (trend) |
51.0 |
-2.1 |
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
