Australian Industry Group Services PMI (September)
Key points:
All five of the activity sub-indexes were above 50 points and indicating growth in September (seasonally adjusted), but four of them grew at a slower pace than in August
- Sales (52.9 points)
- new orders (51.9)
- employment (51.4) growth moderated
- stocks (inventory) (51.8) built up at a slower rate
- Supplier deliveries (52.6) returned to expansion.
Capacity utilisation fell to 77.1% of available capacity being utilised across the services sector in September
Six of the nine sub-sectors expanded in September (trend) with results above 50 points
- Activity accelerated in finance and insurance (63.7 points)
- personal and recreational services (62.9)
- communications services (58.6)
- and health and community services (52.5 points)
- Wholesale trade (56.8 points) grew at about the same rate as in August.
- Growth in property and business services (52.4) decelerated
Reluctant consumer spending saw activity shrink at a faster rate in September in retail trade (43.1 points)
- while the index for the hospitality sub-sector (accommodation, cafes and restaurants) fell by 3.5 points to a record low of 35.7 points
- Transport and storage slipped back into contraction at 48.7 points
Respondents to the Australian PSI® in the business-oriented sub-sectors noted positive demand coming from the construction and mining sectors, predominantly in the eastern states. Respondents in retail and hospitality are reporting reduced spending by consumers due to a mix of increased household electricity costs, flat income growth, and relatively poor consumer confidence. Businesses in Western Australia still appear to be suffering tougher conditions than those in the eastern states in September.
The manufacturing PMI from AiG was out on Monday: 54.2 (prior 59.8)
Earlier today we got the CBA/Markit services & composite PMIs for September
