Services activity shrinks

Submitted 7/01/2009

AAP

  Big rate cuts and the Federal Government's pre-Christmas splurge could not lift Australia's services sector from ongoing difficulties in December, a survey says. The Australian Industry Group-Commonwealth Bank performance services index, based on a poll of 200 firms, rose 1.5 points to 39.3 points in December. This was off November's record low 37.8 index points, with the pace of contraction in activity slowing. A reading below 50 points indicates activity is contracting. Only one of the nine service sectors had expanding activity in the December survey, health and community services, compared with none the previous month.