Following the solid manufacturing PMI earlier, AIG have released the December 2016 services PMI Index, which rose strongly, up nearly 7 points to 57.7 to end the year on a strong note.
Here are the dot points:
- All five activity sub-indexes in the Australian PSI® expanded in December (see table below), with sales jumping 14.0 points to 62.1 points and new orders lifting 6.4 points to 60.4 points.
- Six of the nine services sub-sectors in the Australian PSI® expanded in December (three-month moving averages*) including health & community services (down 1.5 points to 51.7); personal & recreational services (up 5.2 points to 63.0 – its highest level since March 2012); finance & insurance (up 7.7 points to 59.9); and property & business services (up 2.8 points to 54.2).
- Input prices continued to rise in December but at a slower pace (down 1.0 point to 62.1), while wages growth moderated (down 6.1 points to 52.6). The selling prices sub-index lifted 5.5 points to 51.6 points. Improved confidence might enable easier price adjustments in 2017.
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Go property and finance – because that’s the backbone of a robust services economy!
But overall, very solid and the lower Australian dollar during the end of the year has helped indeed.
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The full report can be seen here (PDF)