Some more proof emerging on the negative effect of the carbon...

Some more proof emerging on the negative effect of the carbon tax last week. It was released on the 5th sorry I missed it. The interesting thing is that it mentions the CT I wonder if the Govt will get their jack boots on for the CBA?

"Australian PSI® Key Findings for August:

The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (Australian PSI®) fell 4.1 points to 42.4 in August (readings below 50 represent a contraction in activity with the distance from 50 indicative of the strength of the decrease).

No sub-sector recorded growth in sales or new orders in the month.
The sales sub-index fell 12.7 points to 35.8.
The new orders sub-index also fell sharply - dropping 8.0 points on the previous month.
Finance & insurance was the only sub-sector to record growth (55.7).
The selling price index fell to its lowest level since the series commenced in 2007.
Employment levels continued to contract - 47.6.
Input prices continued to rise."

OH THE INPUT PRICES CONTINUED TO RISE DID THEY!!

and part of their summary:

"Weak consumer demand, the high dollar and the impact of the carbon tax were cited as factors inhibiting growth in the month. Finance & insurance was the only sub-sector to record an expansion in activity.

Australian Industry Group Chief Executive, Innes Willox, said: "The services sector is struggling to find a foothold in the difficult trading conditions created by soft consumer demand, a lack of confidence among business customers and a strong dollar. Both sales and new orders slumped sharply in August despite widespread discounting. With wages and other input costs rising, it is not surprising that employment in the sector continued to ease," Mr Willox said.

Commonwealth Bank Senior Economist, John Peters said: "The August Australian PSI® outcome is gloomy given that only one of nine sub-sectors, namely finance and insurance, notched up an expansion in activity (i.e. reading above 50) in August. In contrast, three sub sectors posted outcomes above 50 in July. Overall, August was the seventh month on the trot that activity contracted in the services sector. Moreover, in August all sub sectors reported falls in sales and new orders in the month. The Australian PSI® sales component fell by a sharp 12.7 points to 35.8, while new orders dropped by 8.0 points to 38.6."

END

Now they talk about 'cautious consumers' no they are not cautious they are tapped out and delevering what a stupid time to introduce a punitive tax that achieved nothing tangible for the planet. As I said the worst timing in history from the worlds worst government.

Dance about this set of numbers Emerson but be honest Whyalla is still there because of your subsidies - borrowed on the deficit for us to pay for as well. Not only obvious damage as above but hidden damage into the future. What a farce.

CW