The AIG Australian Performance of Services Index rose to 51.4 in August 2019 from an over five-year low of 43.9 in the previous month. New orders (+7.3 points to 51.4) and
employment (+11.4 points to 55.2) returned to expansion and finished stocks (4.7 points to 50.9) and supplier deliveries (+11.8 points to 52.3) increased. Meantime, sales went up 2.4 points to 47.5 points, still remaining in contraction territory. By sector, health & education recorded the strongest growth (+3.0 points to 65.2) while the retail trade sector continued to perform weakly (-0.2 points to 45.2). On the price front, input costs rose 2.4 points to 63.4, whereas selling prices increased 1.7 points to 47.5. Services PMI in Australia averaged 50.19 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 42.50 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.