none

Mixed result for services sector

10-05-2011
by 
in 

The services sector was in positive territory in April, according to the latest industry data.

The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (Australian PSI) lifted 5.0 points to 51.5 to be above the 50 points mark separating expansion from contraction.

But despite the improvement, the sector continues to face challenging conditions following five months of decline with sales, new orders and deliveries sub-indices all remaining in negative territory in April.

"Businesses in the sector will be keeping a close watch on activity over the next few months for signs of either a more sustained recovery or a return to the weak conditions that have dominated the past eighteen months, said Australian Industry Group Chief Executive, Heather Ridout.

"At this stage in the cycle, it is critical that business and consumer confidence can gather momentum without setbacks in the form of additional interest rate rises or budget measures that detract from private sector activity.  The high Australian dollar and lack of support from productivity growth will be a continuing drag on the economy," Mrs Ridout said.

Commonwealth Bank Senior Economist, John Peters, said: "The 5 point jump in the Australian PSI® to 51.5 was heartening after some dismal readings in early 2010 which showed services sector activity trapped in the slow lane. The sharp lift in employment and inventories sub-indices in April is good news.”

But Mr Peters warned there are still “negative headwinds” hampering more upbeat activity in the services sector.

These negative factors include an Australian dollar still posting fresh post float highs near US1.10 (with likely further gains against the USD in coming months), and rising interest rates over the past year (and more likely to materialise over the next year).

Related news & editorials

  1. tank
    12.07.2021
    12.07.2021
    by      In , In
    A collaborative partnership between Lockheed Martin, Australian manufacturer Omni Tanker and the University of New South Wales (UNSW) will look to develop and commercialise world-first composite tank technologies, thanks to a grant from the Federal Government’s Advanced Manufacturing Growth Centre... Read More
  2. 3D printer
    12.07.2021
    12.07.2021
    by      In , In
    Obsolescence is an unavoidable part of any manufacturing environment. However, it’s concerning that nearly 70% of companies admit they do not know when vital equipment requires replacing, or when they do, they scramble to find replacements. Here, Claudia Jarrett, country manager at automation parts... Read More
  3. circuit breaker
    09.07.2021
    09.07.2021
    by      In , In
    Distributor Control Logic has announced the availability of the PULS PISA-B electronic protection module.
    The all-new PISA-B generation is one of the most compact protection module solutions on the market, with eight completely separated, individually adjustable channels to ensure reliable... Read More
  4. medical implements
    09.07.2021
    09.07.2021
    by      In , In
    Henkel’s California facilities dedicated to developing and manufacturing resins for 3D printing, have achieved ISO 13485:2016 certification, an international quality standard. In Henkel’s case, it covers the design and manufacturing of biocompatible resins and other materials used to produce non-... Read More
Products
Suppliers