Australia’s Services Industry Index Drops From 19-Month High
Australia’s services industry grew in November at a slower pace as companies reported weaker sales and new orders.
The performance of services index fell 2.3 points to 52.5, Commonwealth Bank of Australia and the Australian Industry Group said in Sydney today. A figure above 50 indicates the industry is expanding.
An expansion amid services companies underscores central bank Governor Glenn Stevens’s decision to raise the benchmark lending rate this week for an unprecedented third straight month. Gerry Harvey, chairman of Australia’s biggest electronics retailer Harvey Norman Holdings Ltd., said yesterday he expects “record Christmas” sales.
“The services sector remains in the early stages of recovery,” said Australian Industry Group Chief Executive Heather Ridout. Still, “slower increases in sales and new orders confirm a hesitant recovery from the bottom of the trough earlier this year.”
Today’s report, which is based on a poll of about 200 companies, is similar to the U.S. non-manufacturing ISM index.
The report measures sales, new orders, deliveries, inventories and employment for companies such as banks, real estate agents, insurers, restaurants, transport firms and retailers to compile the overall performance of services index.
Filed under: money by Fred