The AIG Performance of Services Index in Australia edged down to 52.2 in June 2019 from an eight-month high of 52.5 in May. The latest reading pointed to a weaker expansion in the services activity in 2019, employment (-4.6 points to 47.6); finished stocks (-2.2 points to 49.6); and supplier deliveries (-2.5 points to 52.8) dropped. Meanwhile, sales jumped 4.7 points to 53.1 and new orders gained 1.2 points to 56.8. On the price front, input cost went down 2.3 points to 57.1 and selling prices declined 2.3 points to 45.4. Meantime, average wages decreased 5 points to 57.3 and capacity utilisation fell 1.6 percent to 79.3 percent. Services PMI in Australia averaged 50.22 Index Points from 2003 until 2019, reaching an all time high of 63 Index Points in June of 2018 and a record low of 32.50 Index Points in February of 2009.
Services PMI in Australia is expected to be 53.00 Index Points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services PMI in Australia to stand at 52.00 in 12 months time. In the long-term, the Australia Performance Services Index is projected to trend around 53.00 Index Points in 2020, according to our econometric models.