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. 27.10.2021
    27.10.2021
    by      In
    ‘Buy Australian Now’, the latest campaign from Australian Made is urging all Aussies to support local jobs and economic recovery by backing our local makers and growers as the country begins to open up and prepare for the festive season.
    According to Australian Made Chief Executive, Ben Lazzaro,... Read More
  2. 26.10.2021
    26.10.2021
    by      In
    Work, health and safety are fundamental to our lives and are, more than ever, a central focus for organisations.
    The Hunter region in NSW is well-known for leading the way in industry; this in turn has led to the region becoming champions of WHS.
    The Hunter Safety Awards were born out of desire to... Read More
  3. 19.10.2021
    19.10.2021
    by      In
    There is no doubt that the recent AUKUS agreement between Australia, USA and the UK was a surprise to just about everyone on the planet!
    Taking a closer look into the government’s decision to commit to the AUKUS alliance, much of what has been reported by mainstream media has been inaccurate or... Read More
  4. 18.10.2021
    18.10.2021
    by      In
    Australian Resources and Energy Group AMMA welcomes today’s intervention of the Australian Government seeking to put an end to three months of damaging strikes at Fremantle Port.
    It has been reported the Australian Government has stepped in, utilising its powers under the Fair Work Act to seek an... Read More
Products
Suppliers