The Australian Industry Group Australian Performance of Services Index (Australian PSI®) rose by 1.6 points to 53.3 points (seasonally adjusted) in August 2022 indicating mild growth and an improvement on the three previous months. 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 August, following mild growth in July.
• Consumer oriented sectors generally fared better in August. Retail trade & hospitality, improved as did health, education & community services.
• Most services activity indicators were mildly positive, but all price indicators – wages, input prices and sales prices – slowed from record highs.
• Services capacity utilisation rose to 83.7%, the highest result since May 2021.
• Labour shortages and concerns that future demand will decline were key themes for businesses.