The Australian Industry Group’s Performance Of Services Index has just been released for August and while it rose 0.1 points it appears stalled in the contraction zone below 50 printing 49.4.
There was some encouraging signs according to the AiG which said that sales (+1.1 to 51.4) and new orders (52.4) were comfortably above the contraction zone.
But with employment, deliveries and stocks all still below 50 the outlook remains uncertain.
It’s a fact highlighted by AiG CEO Innes Willox who said “The patchiness of services sector activity continued in August with the sector overall falling short of expansion despite growth in sales and orders and continued strength in a number of sub sectors.”
He added that even with the sales and new orders looking relatively healthy, “businesses across the services sectors remain hesitant to put on new staff ahead of more convincing signs of a pick-up”.