The Australian Industry Group (AIG) today released its Performance of Services Index (PSI), which shows that Australia’s services sector is dead as a dodo:
According to AIG, the PSI fell “0.1 points to 31.5 points in June 2020 (seasonally adjusted), indicating another serious contraction in activity in June and at a similar pace to May. This was the second lowest result in the history of this series, following a record low in April (commencing in 2003)”.
As shown below, it is a sea of red ink with all sub-sectors contracting:
Importantly, wages and employment have collapsed:
Alongside sales and new orders:
Whereas spare capacity is at record levels:
Better ramp-up immigration (not!).
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