AIG Performance of Services index for May up 1.3 points (prior was 48.6) to 49.9
New orders up
We had the manufacturing PMI on Monday, also improving (but both still in contraction … like I said, catering for all biases
)
From the report:
- Respondents voiced concerns about the local economy and the dampening effect the public reaction to the Federal Budget has had on both consumer and business confidence
- In particular, several respondents said policy uncertainties arising from the Budget appear to be inhibiting demand for business-to-business services, while proposed changes to pensions, family benefits and public sector jobs (although not yet implemented) are already affecting consumer sentiment and local spending
