Australian Industry Group Performance of Services Index

October comes in at

  • September was 52.1

Key points highlighted by AiG from the October results:

a marginal slowing in growth from September

Four of the five activity sub-indexes were above 50 points and indicating growth in October (seasonally adjusted), with one sub-index declining

  • Sales (48.1 points) fell 4.8 points into contraction while growth in new orders (51.5) and supplier deliveries (51.7) moderated. Employment (53.3) and stocks (inventory) (54.8) built up at a faster rate in October

Five of the nine sub-sectors expanded in October (trend) with results above 50 points, while four contracted.

  • Activity accelerated in personal and recreational services (66.4) and property and business services (58.0) while growth across finance and insurance (55.7 points), communications services (54.9) and wholesale trade (51.2 points) moderated
  • Activity shrank at a faster rate in October in health and community services (47.1 points), transport and storage (43.3) and hospitality (accommodation, cafes and restaurants) (36.2 points and the lowest result since mid-2013). Retail trade (44.4 points) declined at a slower pace than in September (trend)

Respondents in the business-oriented sub-sectors noted continuing demand coming from the construction and mining sectors, predominantly in the eastern states. Respondents in retail and hospitality are reporting weak spending by consumers due to a mix of increased household electricity costs and hesitant consumers. Businesses in Western Australia still appear to be facing tougher conditions than those in the eastern states in October, although some glimmers of improvement are emerging in the west, as its boom-slump cycle starts to turn up again.

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The key points highlighted by AiG fit with what I hear elsewhere - construction OK, mining on the improve, consumer weakness due to energy costs.

There is little impact on the AUD from this, there rarely is.

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Earlier today:

And earlier this week:

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Still to come from Australia today: