Economic Buzz: Australias Services Sector Shows Mild Contraction

7 Jun 2022 , 09:27 AM

The Australian Industry Group Australian Performance of Services Index (Australian PSI) fell by 8.6 points to 49.2 in May, indicating mild contraction and a deterioration from the strong results seen in recent months (results above 50 points indicate expansion, with the distance from 50 points indicating the strength of the increase). Services capacity utilization remained at 82.3%, an all-time high for this series. Businesses report plans to increase capacity. Staff shortages, rising input prices and ongoing difficulties sourcing stock continue to constrain activity, but there are some signs of supply constraints easing in pockets of the services sector.Powered by Commodity Insights