The Australian Industry Group Australian Performance of Services Index (Australian PSI®) fell by 0.4 points to 48.8 points (seasonally adjusted) in June 2022 indicating mild contraction for the second month and a deterioration from the strong results seen in recent months. Results below 50 points indicate contraction in the Australian PSI®, with lower numbers indicating a stronger rate of contraction.

• The Australian PSI® indicates the services sector contracted in June, for the second time in six months.
• Uneven dynamics continue to affect the services sector. Business & property and health & community services significantly down, but logistics, retail & hospitality, and personal services up.
• Two of the services activity indicators were positive and improved, three contracted reflecting a decline from the strong results seen earlier in the year.
• Services capacity utilisation fell to 80.0%, a moderation from the alltime high for this series last month.
• Staff shortages, rising input prices and ongoing difficulties sourcing stock continue to constrain some activity, but customer demand in some sectors was robust.