5 Nov 2012

Australian services sector contracts further

12:46 pm on 5 November 2012

The services sector in Australia contracted for a ninth consecutive month, due to weak consumer confidence.

The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index for October rose 0.9 points to 42.8 points. A reading below 50 indicates a contraction in activity.

AAP reports eight of the nine sub-sectors covered by the survey recorded falls in the month, with transport and storage, retail trade and wholesale trade among the weakest.

Commonwealth Bank senior economist John Peters said the services sector continued to suffer from the impact of the high Australian dollar.

"Sectors exposed to household spending, particularly retail trade and wholesale trade segments, have experienced particularly sharp falls in activity," he said.