The services sector has expanded for the first time in 15 months, as a result of rising consumer confidence fuelled by the Federal Government’s stimulus payments.
The Australian Industry Group-Commonwealth Bank of Australia performances of services index (PSI) rose by 10.3 index points to 50.2 points.
Australian Industry Group chief executive Heather Ridout said the figures prove the economy is slowly recovering, following on from strong retail figures in May.
Ridout said the results suggest the services sector activity strengthened in June off the back of “rising consumer confidence, low interest rates and the Government’s cash stimulus.”
Improvements in finance and insurance, retail trade, accommodation, cafes and restaurants, health and community services suggests that “the clouds around the outlook for services are lifting,” said Ridout.
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