SYDNEY, Jan 6 (Reuters) - Australian service industries remained subdued in December due to weakness in finance and property, but there was a promising pickup in consumer-related sectors like wholesaling and restaurants.
Thursday's survey of 200 firms by the Australian Industry Group (AiG) and Commonwealth Bank found some companies complaining about higher interest rates and the strong local dollar.
The overall performance of services index (PSI) edged up 0.2 points to 46.4 in December, but remained below the 50-level that separates growth from contraction.
The weakness was concentrated in the professional services sub-sectors, particularly property & business services, finance & insurance, and communications.
In contrast, activity in sectors exposed to household spending generally picked up in December. The strongest growth was recorded in wholesale trade, hospitality and personal & recreational services sub-sectors.
'A continuing pickup in economic growth, an associated further firming in jobs markets and an unemployment rate dipping under 5 percent, together with solidly rising incomes and wages, are likely to entice consumers to spend more in 2011,' said CBA senior economist John Peters.
The survey's measure of new orders inched up 0.3 points to 45.3 in December while the index of employment firmed 1.1 points to 48.7. The measure of wages gained 2.7 points to 62.8 while capacity utilisation rose 2.5 percentage points to 76.9 percent.
(Reporting by Wayne Cole; Editing by Mark Bendeich) Keywords: AUSTRALIA ECONOMY/SERVICES (Wayne.Cole@thomsonreuters.com)(612 9373 1813)(Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Thursday's survey of 200 firms by the Australian Industry Group (AiG) and Commonwealth Bank found some companies complaining about higher interest rates and the strong local dollar.
The overall performance of services index (PSI) edged up 0.2 points to 46.4 in December, but remained below the 50-level that separates growth from contraction.
The weakness was concentrated in the professional services sub-sectors, particularly property & business services, finance & insurance, and communications.
In contrast, activity in sectors exposed to household spending generally picked up in December. The strongest growth was recorded in wholesale trade, hospitality and personal & recreational services sub-sectors.
'A continuing pickup in economic growth, an associated further firming in jobs markets and an unemployment rate dipping under 5 percent, together with solidly rising incomes and wages, are likely to entice consumers to spend more in 2011,' said CBA senior economist John Peters.
The survey's measure of new orders inched up 0.3 points to 45.3 in December while the index of employment firmed 1.1 points to 48.7. The measure of wages gained 2.7 points to 62.8 while capacity utilisation rose 2.5 percentage points to 76.9 percent.
(Reporting by Wayne Cole; Editing by Mark Bendeich) Keywords: AUSTRALIA ECONOMY/SERVICES (Wayne.Cole@thomsonreuters.com)(612 9373 1813)(Reuters Messaging: wayne.cole.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.