Hospitality shines, other sectors shrink
By Leon Gettler
The Australian services sector is in retreat.
According to the Australian Industry Group’s latest Australian Performance of Services Index, the sector has started 2016 with a fourth consecutive month of contraction in January, rising 2.1 points to 48.4.
Any reading below points to a contraction.
There were only two pockets of growth: health & community services (up 6.2 points to 58.9) and personal & recreational services (up 1.9 points to 58.1).
Ai Group chief executive Innes Willox said: “The weak start to 2016 for the services sector continues the easing of conditions evident over the last few months of 2015 and highlights the fragile and fragmented nature of growth in the domestic economy.
“Pockets of growth in the Australian PSI continue to be concentrated in the consumer-oriented sub-sectors such as health & community services, hospitality (hotels, cafes & restaurants), and personal & recreational services.
“Retail and wholesale trade continues to face uneven demand for consumer goods. In the business-facing sub-sectors, including professional services, finance, transport and IT, activity is patchy other than for businesses linked closely to capital city housing activity.”
9th February 2016