5 Mar 2014
Australian Performance of Services Index highest since March 2008
FXStreet (Bali) - The latest seasonally adjusted Australian Performance of Services Index soared to 55.2 points in February from a 49.3 previous, representing the first expansion for the Australian PSI (reading above 50 points) since January 2012 and the highest reading since March 2008.
Key findings
"Despite the strong result in the Australian PSI®this month, growth was concentrated in just a few services sectors, primarily health and community services (67.7 points) and finance and insurance (67.0 points). Both of these sub-sectors have been performing more strongly than other services sub-sectors over the last six months, and both are relatively large – and therefore statistically dominant – in the Australian PSI"
"Other sub-sectors improved but remained below 50 points. The large retail trade sub- sector moved very close to stabilising at 49.5 points (in 3 month moving averages)."
"Feedback from respondents in many services sector indicates that local demand conditions remain challenging for a large number of services businesses and the outlook continues to be fragile for them."
"All of the activity sub-indexes of the Australian PSI® moved above 50 points in February. The sales sub-index rose to its highest level (58.8 points) since October 2009, while the new orders sub-index pointed towards a second month of expansion. Services employment also expanded in February following two months of contraction (readings below 50 points)."
"In addition, both the supplier deliveries and stocks sub-indexes strengthened to above 50 points this month, suggesting businesses were replenishing their stock levels after the Christmas/New Year trading period."
Key findings
"Despite the strong result in the Australian PSI®this month, growth was concentrated in just a few services sectors, primarily health and community services (67.7 points) and finance and insurance (67.0 points). Both of these sub-sectors have been performing more strongly than other services sub-sectors over the last six months, and both are relatively large – and therefore statistically dominant – in the Australian PSI"
"Other sub-sectors improved but remained below 50 points. The large retail trade sub- sector moved very close to stabilising at 49.5 points (in 3 month moving averages)."
"Feedback from respondents in many services sector indicates that local demand conditions remain challenging for a large number of services businesses and the outlook continues to be fragile for them."
"All of the activity sub-indexes of the Australian PSI® moved above 50 points in February. The sales sub-index rose to its highest level (58.8 points) since October 2009, while the new orders sub-index pointed towards a second month of expansion. Services employment also expanded in February following two months of contraction (readings below 50 points)."
"In addition, both the supplier deliveries and stocks sub-indexes strengthened to above 50 points this month, suggesting businesses were replenishing their stock levels after the Christmas/New Year trading period."