Australian services sector continued to expand in June
The Australian Industry Group Australian Performance of Services Index (Australian PSI) fell by 0.2 points to 51.3 points in June, indicating a modest expansion in activity across the services sector for a second consecutive month (results above 50 points indicate expansion, with higher numbers indicating a stronger rate of expansion).
• Of the five activity sub-indexes in the Australian PSI , employment (53.1 points) lifted 4 points into positive territory in June, its first positive reading since August 2015. Sales (52.8 points) picked up 1.1 points while new orders (51.8 points) lost 3.5 points, indicating a positive but slower pace of growth. Stocks (46.6 points) slipped into negative territory (down 4.6 points from May), while deliveries (48.5 points) remained negative, indicating a reduction in inventories and supplier deliveries for the end of the financial year in June.
• Two of the nine services sub-sectors in the Australian PSI® expanded in June (in three month moving averages) and two were stable. Retail trade (66.5 points and a record high for this sub-sector) and finance & insurance (66.8 points) expanded in June. Health &community services (49.4 points) and property & business services (49.4 points) were stable in June. Communication services (44.7 points), wholesale trade (42.0 points), personal & recreational services (39.9 points), hospitality (37.3) and transport & storage (36.2) all contracted, with a relatively faster rate of contraction evident in hospitality and transport.