Australian Industry Group | Author
Published Dec 05, 2018 10:43
The Australian PSI has indicated positive conditions
The Australian Industry Group Australian Performance of Services Index (Australian PSI) rose 4.0 points to 55.1 in November, indicating accelerating growth in a 21st consecutive month of positive conditions (results above 50 points indicate expansion, with the distance from 50 points indicating the strength of the increase).
Ai Group Chief Executive, Innes Willox, said: "After easing in recent months, the pace of expansion in the Australian services sector bounced into higher growth territory in November as sales and new orders both accelerated. Businesses will be hoping the November bounce is shown to be more than a bring-forward of holiday-season spending and is sustained over coming months. While employers continued to add more staff, employment grew more gradually in November. There were mixed results across the diverse services sector with consumer-facing sectors such as retail and hospitality services reporting stronger results than some of the business-facing service sectors such as finance & insurance, transport and wholesale services which contracted during the month. Selling prices remained under pressure across the sector while input prices and wages both rose, further squeezing margins," Mr Willox said.
Australian PSI – Key Findings for November:
Seasonally adjusted |
Index this month |
Change from last month |
12 month average |
Trend |
Index this month |
Change from last month |
12 month average |
Australian PSI® |
55.1 |
4.0 |
55.0 |
Property & business |
51.8 |
-1.3 |
59.1 |
Sales |
54.5 |
8.7 |
54.1 |
Finance & insurance |
46.9 |
-2.2 |
57.5 |
Employment |
52.9 |
-4.4 |
55.4 |
Wholesale trade |
48.3 |
-1.7 |
53.0 |
New Orders |
56.8 |
9.4 |
55.8 |
Transport & storage |
43.2 |
0.2 |
52.3 |
Supplier deliveries |
57.8 |
3.9 |
55.0 |
Communications |
55.8 |
1.6 |
50.9 |
Finished stocks |
54.1 |
0.6 |
53.9 |
Consumer-oriented services |
|||
Capacity utilisation (%) |
78.0 |
-4.0 |
79.9 |
Retail trade |
56.5 |
0.0 |
48.7 |
Prices and wages |
Hospitality |
62.6 |
2.1 |
50.6 |
|||
Input prices |
59.4 |
-3.4 |
62.8 |
Health & education |
56.9 |
-1.3 |
57.2 |
Selling prices |
47.8 |
2.0 |
49.9 |
Recreation & other services |
47.9 |
1.1 |
53.2 |
Average wages |
60.3 |
5.6 |
59.8 |
Results above 50 points indicate expansion. All indexes for sub-sectors in the Australian PSI are reported in trend terms (Henderson 13-month filter).
Background: The Ai Group Australian PSI is a leading indicator of services activity in the Australian economy. It is a seasonally adjusted national composite index based on the diffusion indices for sales, orders/new business, deliveries, inventories and employment with varying weights. An Australian PSI reading above 50 points indicates that services activity is generally expanding; below 50, that it is declining. The distance from 50 is indicative of the strength of the expansion or decline. Results are based on a sample of around 200 companies each month.
Please click below to read the full report:
Written By: Australian Industry Group
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.