Sorry if this has been posted already but it also confirms every metric I am seeing (which confirms my thesis as well) atm:
"Australian PSI®: Services sector loses ground in August Wednesday 05 September 2012
Sharp falls in sales and new orders saw the services sector lose ground in August. The latest seasonally adjusted Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (Australian PSI®) fell 4.1 points to 42.4 in the month (readings below 50 represent a contraction in activity with the distance from 50 indicative of the strength of the decrease).
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."
and their summary...
"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."
This backs up the construction figure I posted last week as well. Yellowcake you are spot on it is a no brainer. Much damage done to our economy at a time we could least afford it.
