AiG Performance of Services index for November
Not as bad as last month. Still a dreadful result though.
- Ninth consecutive month of contraction
- All activity sub-indexes remained below 50
- Sales (down 3.9 points to 41.1) – sub-index contracted for a third consecutive month
- New orders (down 1.6 points to 42.3) – sub-index contracted for a third consecutive month
- Supplier deliveries (up 2.9 points to 42.1) and stock levels (up 5.0 points to 42.6) have now spent six months in negative territory
- Employment sub-index increased by 2.7 points to 49.5
Despite a pick-up in residential and commercial property activities, respondents to the Australian PSI® raised ongoing concerns about the weak local economy, fragile consumer and business sentiment, slower growth in household disposable income, the continuing decline in mining construction activity, and the flat manufacturing industry.
Services is the largest sector in the Australian economy .. And those graphs suck.
Ai Group Chief Executive, Innes Willox:
- “The services sector remained disturbingly weak in November, reflecting fragile consumer and business sentiment, slower growth in household disposable incomes, the continuing decline in mining construction, flat manufacturing activity and contracting public sector spending.
- There are some threads of growth channeling into the services sector from the current strength in residential and, to a lesser extent, commercial construction, but these have not been sufficient to counter the factors weighing negatively on the sector.
- The Australian economy remains stuck in the slow lane and there are very few signs of the broader front of growth that will be required to rebalance the economy as mining investment and commodity prices retreat.”
