none

Services sector lifts in January

17-02-2012
by 
in 

The services sector recorded a lift in activity in January, following three consecutive months of decline, according to the latest industry data.

The Australian Industry Group (AiGroup)/Commonwealth Bank Australian Performance of Services Index (Australian PSI) was 2.9 points stronger at 51.9 in January (readings above 50 indicate an expansion in activity).

Strong growth in accommodation, cafes and restaurants (56.4), finance and insurance (67.5) and personal & recreational services sub-sectors (66.6) drove the positive result. The remaining sub-sectors contracted – highlighting the ongoing patchiness of the services sector.  In six of the nine sub-sectors, a majority of businesses reported deeper discounting of selling prices compared to a year ago.

"The lift in services sector activity is a welcome change from the contraction in the sector in the last quarter of 2011, said Australian Industry Group Director Public Policy, Dr Peter Burn.

“The return of key sectors directly exposed to household spending to positive territory provides a tentative sign that the easing of interest rates towards the end of 2011 may have lifted consumer confidence despite the dampening stream of news coming from Europe. Overall, however, the services sector remains patchy and continues to face strong headwinds including from the strength of the dollar and flat labour market conditions," Dr Burn said.

Related news & editorials

  1. 22.09.2021
    22.09.2021
    by      In
    The Northern Territory (NT) Government in partnership with the Advanced Manufacturing Growth Centre (AMGC) has opened applications to the total $7.5 million Advanced Manufacturing Ecosystem Fund (AMEF) as appreciation for local manufacturing rises in the Territory.
    The Fund delivers on the... Read More
  2. 22.09.2021
    22.09.2021
    by      In
    Towns split by interstate borders are used to living as one community so industries and businesses on the border face unique challenges.
    Therefore, The Victorian Government will deploy a team of locally based ‘Border Brokers’ to support industries and businesses impacted by restrictions on Victoria... Read More
  3. 22.09.2021
    22.09.2021
    by      In
    Popular snack foods; Kettle Chips, Thins, Cheezels and CC’s could soon be manufactured in a new premises in the Western suburbs.
    A $222 million development proposal could see the Snack Brands Australia warehouse and distribution centre on Distribution Drive in Orchard Hills expanded to include food... Read More
  4. 20.09.2021
    20.09.2021
    by      In
    Boeing and RMIT are joining forces in an exciting collaboration to develop local solutions for the manufacturing of space equipment.
    “Australia’s burgeoning space sector requires the production of complex, low volume, bespoke components not suited to conventional manufacturing techniques,” Boeing... Read More
Products
Suppliers