Australia AiG Performance of Services Index dropped -0.4 to 48.8 in June. Looking at some details, sales plummeted by -8.8 to 41.9. Employment surged 7.9 to 55.3. New orders ticked down by -0.8 to 58.9. Input prices rose 0.3 to 69.0. Selling prices rose 5.3 to 67.2. Averages jumped 10.3 to 67.7.
Innes Willox, Chief Executive Ai Group, said: “With interest rates rising for the first time in a decade, we have seen a ‘two-speed’ services sector emerge in June. Industries which are sensitive to sentiment changes – such as business & property, and personal & recreational services – declined into contraction. Less interest-rate-exposed services remained in a growth phase. With the RBA increasing rates by 50 basis points again this week, we would expect this two-speed pattern to gather pace.”
