PSI still occupying the WC

The AiG Performance of Services Index for October is out this morning and if its to services growth that we are going to turn to offset falling mining growth then there is more work to do. The headline index rose 0.9 points to 42.8 but remains well inside contractionary territory:

On the sectors there may be a ray of hope in an improvement in financial services, but that’s about it:

Aales still stink:

And new orders do as well, though the second derivative improved:

Tellingly, employment and wages are still weakening:

Rate cut all over this.

Psi Report October 2012 Final