The Australian Industry Group Australian Performance of Services Index (Australian PSI®) fell slightly dropping 0.3 points to 47.7 points (seasonally adjusted) in October 2022 indicating contraction for the second 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 October, the second month of declining results.
- Results were mixed – business & property services showed the strongest month-on-month decline and logistics the largest improvement. Logistics was the only service sector in growth.
- Sales, deliveries and stocks all indicated substantial deterioration; new orders and employment were positive and improved from September.
- Services capacity utilisation remained elevated, rising to 79.9%. This reflects tight employment conditions.
- Wet weather and flooding events, cumulative interest rate increases, and labour shortages were key concerns for businesses.