Australian May Services Sector Index Only In Contraction By The Narrowest Margin

Australia’s performance of services index edged up 1.3 points to 49.9 in May.

At just below 50 the reading in the AiG Performance of Services Index indicates the services sector is still in contraction, but only by the narrowest of possible margins.

The sub-indices for sales, new orders, supplier deliveries and stocks sub-indexes were all above 50, signalling expansion.

The hospitality sub-index that takes in things like hotels, restaurants and cafes continued its contraction run that has been evident since may 2013, but rose a strong 7.4 points to 47.5.

The finance and insurance industry sub-index was again one of the strongest readings at 62.7, but down 2.3 points. Property and business services slid further into contraction, down 3.4 points. Here’s the chart:

Here’s the headline PSI chart from the Australian Industry Group.

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