Service industry activity hits record low
Posted
A report by the Australian Industry Group and Commonwealth Bank shows activity in the services sector has hit a record low.
The survey showed another contraction in August, with higher petrol prices and interest rates reducing consumer spending on services.
The Performance of Services Index fell 3.5 points to 39.3, the lowest level since the survey began more than five years ago.
Commonwealth Bank chief economist Michael Blythe says retail trade, accommodation and cafes were among the hardest hit.
"Certainly anything related to household spending seems to be particularly hard hit but one thing that does stand out from these service sector readings is that the decline is pretty broadly based," he said.
