Australian Industry Group Performance of Services Index
'Key findings' from AiG:
- The services sector expanded again in July 2015, and more strongly than in June
- Performance of Services Index now at its highest level since February 2014
- Conditions across the services sectors have been generally positive or steady in 2015
- PSI expanding or holding steady (readings around 50 points) since January
- Recent results suggest growth in Australian demand for goods and services (measured by the ABS in the National Accounts as 'domestic final demand') may have improved modestly in the second and into the third quarter of 2015
- All of the five activity sub-indexes expanded (i.e. above 50 points) in July for the first time since February 2014
- Four of the nine services sub-sectors grew in July, 5 didn't
- Stronger housing market activity, low interest rates and the lower dollar are supporting demand for some local services. A number of business service respondents also attributed the recent improvement in trading conditions to the small business measures announced in the 2015-16 Federal Budget
- However, a weak economic outlook and low business and public investment are still constraining demand for some business services, while unsteady consumer confidence and low household income growth continue to constrain household expenditure
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The Australian manufacturing PMI was out earlier in the week ... a surprise jump back into expansion