Australian service industry weakens in Dec.: report
Xinhua, January 7, 2015 Adjust font size:
After two months of very weak performance, conditions in the services industries deteriorated at a slower pace in December, a new report revealed on Wednesday.
The private Australian Industry Group's (Ai) performance of services index (PSI) rose 3.7 points in December to 47.5, but remained below the 50 mark that divides growth from contraction.
Activity in eight of the nine sectors contracted in the month, according to the index and the only sub-sector to expand in December was health and community services.
The continued weakness suggested a fragile outlook for the summer trading period, the report said.
Ai Group chief executive Innes Willox said the sector was hoping for stronger spending in 2015, fuelled by the lower Australian dollar.
"Respondents to the Australian PSI expressed continuing concerns about consumer spending due to weak local economic conditions, fragile consumer and business confidence and slower growth in household disposable income," he said in a statement.
"In addition, the ongoing decline in mining construction activity and flat manufacturing investment continue to weigh down demand for business-to-business services including accounting, legal, personnel and administrative services.
"The recent fall in the Australian dollar is very welcome, but it seems it is still too soon to see any significant benefits for local activity." Endi
