The Australian Industry Group Australian Performance of Services Index (Australian PSI®) rose by 2.9 points to 51.7 points (seasonally adjusted) in July 2022 indicating growth and an improvement on the two previous months of deterioration. Results above 50 points indicate expansion in the Australian PSI®, with higher numbers indicating a stronger rate of expansion.
- The Australian PSI® indicated mild growth in the services sector in July, following two months of weak results.
- Uneven dynamics continue to affect the services sector. Business & property, personal services and retail & hospitality were up. Logistics and health & community services were significantly down.
- Three of the services activity indicators were positive and improved - reflecting resilience in some activity - two contracted.
- Services capacity utilisation rose slightly to 80.3%, similar to the June result and above the long-term average.
- Customer demand in some sectors remains robust, but increased input costs, labour shortages and concerns about future demand impacted services businesses in July.