none

Services sector dives further

31-08-2010
by 
in 
Services sector dives further

The services sector recorded its most severe slump in three years during April driven by significant declines in new orders and low sales across the sector.  

The latest Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (Australian PSI) dropped 7.4 points to 39.6 in the month (readings below 50 represent a contraction in activity with the distance from 50 indicative of the strength of the decrease).
 
None of the services sub-sectors experienced growth in April. The strongest declines were recorded in finance & insurance, personal & recreational and health & community services. Sales were down sharply with the sales sub-index falling by 10.8 points to 33.8. The new orders sub-index was at a level not seen since the Global Financial Crisis, down 11.9 points to 35.8 and employment fell for the third consecutive month.
 
Australian Industry Group Chief Executive, Innes Willox, said: "The slump in activity across the services sector during April gives strong support to the decision of the Reserve Bank to cut the cash rate. The sector is being held back by weak household and business demand, the flow-on impacts of the slump in residential and commercial construction and the competitive challenges of the high dollar.”
 
Commonwealth Bank Senior Economist, John Peters said: "The stellar Australian dollar in particular continues to hamper all export industries outside mining and import competing industries.”

Related news & editorials

  1. 21.01.2019
    21.01.2019
    by      In
    Australia’s largest automotive industry event heads to Melbourne in 2019, with the Australian Auto Aftermarket Expo running at the Melbourne Convention & Exhibition Centre from Thursday 4th to Saturday 6th April. The event will feature more than 400 exhibitors and upwards of 10,000 professional... Read More
  2. 18.01.2019
    18.01.2019
    by      In
    Sydney-based food processing and packaging specialist tna has named Jonathan Rankin as Chief Executive Officer. Having recently returned to tna as Chief Sales Officer, Rankin will now lead tna’s day-to-day operations, while focusing on the implementation of new processes that will take the company’... Read More
  3. 17.01.2019
    17.01.2019
    by      In
    Despite an increased global focus on IoT security, the latest report from security specialist Gemalto reveals that only around half (48%) of businesses can detect if any of their IoT devices suffers a breach. “The state of IoT security” also finds that the proportion of companies’ IoT budgets spent... Read More
  4. 17.01.2019
    17.01.2019
    by      In
    Online entries for the Australian Packaging and Processing Machinery Association Awards of Excellence will close on 26th January, with judging set to begin on 28th January. The award winners will be announced at the Gala Awards Ceremony on 27th March.
    According to APPMA Chairman Mark Dingley, “... Read More