The Australian PSI (performance of services index) fell for an eighth consecutive month in November, with activity in wholesale trading representing one of the worst of the nine areas covered by the report.
Particularly alarming was the fall in new wholesale orders, which was the worst out of all the sectors, including retail, transport and storage, and property and business services.
New orders across the sectors fell 3.4 points to 35.3 points, which is well below the key 50.0 level separating expansion from contraction, mostly due to “the prevailing weak economic conditions”, said the report.
Wholesale trade also represented the strongest fall in activity during November, followed closely by property and business services, and health and community services.
Over the month, activity contracted at “a slower pace” in the finance and insurance, personal and recreational services, and accommodation, cafes and restaurants sectors, according to the report, however these sectors still contributed to an overall PSI decline by 4.3 points to 37.8.
The sales, new orders and employment sub-indexes all fell to new record lows in November, while supplier deliveries and inventories also declined significantly, said the report.
Unsurprisingly, employment levels also declined in the wholesale trade throughout the month, following flat/modest growth in October.
The Australian PSI is based on a sample of around 200 companies and is released by the Australian Industry Group (AiGroup) once a month.
For more information about the AiGroup, visit www.aigroup.asn.au