The Australian Industry Group Australian Performance of Services Index (Australian PSI®) fell slightly by 0.3 points to 47.7 in October, remaining in contraction for a second month (results below 50 points indicate contraction, with lower numbers indicating a stronger rate of contraction).
Innes Willox, Chief Executive of the national employer association Ai Group, said: "Australia's service sector faces weakening conditions. Chronic labour shortages have dragged on the supply-side of the sector for most of this year. And now the effects of cumulative interest rate rises are weakening demand conditions as well. Conditions particularly deteriorated for retail & hospitality and business & property, which are most exposed to consumer sentiment," Mr Willox said.
Australian PSI® – Key Findings for October 2022:
|
Seasonally adjusted |
Index this month |
Change from last month |
12- month average |
Seasonally adjusted |
Index this month |
Change from last month |
12- month average |
|
Australian PSI® |
47.7 |
-0.3 |
50.2 |
Business-oriented services |
|||
|
Sales |
41.3 |
-0.5 |
50.6 |
Business & property |
38.4 |
-8.2 |
50.7 |
|
Employment |
53.9 |
1.3 |
50.5 |
Logistics |
51.2 |
9.9 |
47.9 |
|
New Orders |
54.5 |
4.3 |
50.9 |
Finance & insurance |
na |
na |
na |
|
Supplier deliveries |
38.4 |
-4.7 |
48.7 |
||||
|
Finished stocks |
45.3 |
-8.2 |
49.1 |
Consumer-oriented services |
|||
|
Capacity utilisation (%) |
79.9 |
0.8 |
76.8 |
Retail trade & hospitality |
48.1 |
-3.1 |
48.0 |
|
Prices and wages |
Health & education |
45.0 |
4.4 |
51.8 |
|||
|
Input prices |
77.6 |
4.2 |
64.4 |
Personal, recreational & other |
57.5 |
-3.8 |
53.1 |
|
Selling prices |
62.2 |
3.9 |
49.9 |
||||
|
Average wages |
64.8 |
-1.1 |
57.6 |
Australian PSI® (trend) |
48.7 |
-0.6 |
50.1 |
Results above 50 points indicate expansion. Data is seasonally adjusted; trend data in the Australian PSI® calculated with a Henderson 13-month filter formula.
na: Results are not available for this sector in this period due to unusually low survey response numbers. All sectors are included in the total results.
NOW AVAILABLE:
Click here for full list of 2022 release dates for the Australian PSI®
Background: The Ai Group Australian PSI® is a leading indicator of services activity in the Australian economy. It is a seasonally adjusted national composite index based on the diffusion indices for sales, orders/new business, deliveries, inventories and employment with varying weights. An Australian PSI® reading above 50 points indicates that services activity is generally expanding; below 50, that it is declining. The distance from 50 is indicative of the strength of the expansion or decline. Results are based on a sample of around 200 companies each month.
Media Enquiries: Tony Melville: 0419 190 347
