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5 Aug 2014
Australia: AiG performance of services index nears expansion
FXStreet (Bali) - AiG Performance of Services Index for July came at 49.3 vs 47.6 in June.
Key findings - AiG website
Both the sales and new orders sub-indexes in the Australian PSI® moved to slightly above 50 points in July, indicating a stabilisation or very mild expansion.
Despite the improvement in sales and new orders, services businesses continued to reduce supplier deliveries and stock levels, with the supplier deliveries sub-index moving up by 3.3 points to 47.8 in July, signalling a mild contraction.
The wages sub-index rose by 6.9 points to 64.6 points in July, reflecting the 3% increase in the national minimum and award wage rates, as well as the increase in the Superannuation Guarantee rate to 9.5% that took effect from 1 July.
The retail trade sub-index in the Australian PSI® was mostly unchanged in July, decreasing by 0.5 points to 46.0 points, indicating further contraction in the retail industry, which last expanded in June 2011.
The wholesale trade sub-sector index moved lower in July, falling 3.1 points to 43.5 - the lowest level since October 2013 (three month moving averages). This sub-sector has now contracted for 33 consecutive months.
The accommodation, cafes and restaurants ('hospitality') sub-sector expanded strongly for a second month in July, rising a further 6.8 points to 61.1 - the highest level since May 2007 (three month moving average).
The giant health and community services sub-sector continued to expand in July, although its sub-index declined by 2.5 points to 59.6 points (three month moving averages).
Key findings - AiG website
Both the sales and new orders sub-indexes in the Australian PSI® moved to slightly above 50 points in July, indicating a stabilisation or very mild expansion.
Despite the improvement in sales and new orders, services businesses continued to reduce supplier deliveries and stock levels, with the supplier deliveries sub-index moving up by 3.3 points to 47.8 in July, signalling a mild contraction.
The wages sub-index rose by 6.9 points to 64.6 points in July, reflecting the 3% increase in the national minimum and award wage rates, as well as the increase in the Superannuation Guarantee rate to 9.5% that took effect from 1 July.
The retail trade sub-index in the Australian PSI® was mostly unchanged in July, decreasing by 0.5 points to 46.0 points, indicating further contraction in the retail industry, which last expanded in June 2011.
The wholesale trade sub-sector index moved lower in July, falling 3.1 points to 43.5 - the lowest level since October 2013 (three month moving averages). This sub-sector has now contracted for 33 consecutive months.
The accommodation, cafes and restaurants ('hospitality') sub-sector expanded strongly for a second month in July, rising a further 6.8 points to 61.1 - the highest level since May 2007 (three month moving average).
The giant health and community services sub-sector continued to expand in July, although its sub-index declined by 2.5 points to 59.6 points (three month moving averages).