The Ai Group Australian Performance of Services Index (Australian PSI®) fell by 5.3 points to 48.0 points (seasonally adjusted) in September 2022 indicating contraction following two months of expansionary readings. Results below 50 points indicate contraction in the Australian PSI®, with lower numbers indicating a stronger rate of contraction.
- The Australian PSI® fell 5.3 points into contraction in September, following two months of mild growth.
- All service sector activity indicators were lower than August, and most are now in contraction. Employment and inventories are still expanding but at a slower pace than the previous month.
- The input price indicator rose while sales prices slowed – indicating increased pressure on margins.
- Services capacity utilisation fell to 79.1, the lowest result since November 2021.
- Labour shortages and concerns over economic uncertainty were key themes for businesses.