Activity in the key services sector of Australia's economy fell to a 15 month low in October. The trend is concerning economic commentators and points to a difficult period for retailers this Christmas. The Performance of Services Index compiled by the Australian Industry Group fell 1.8 points to 43.6 during October.
Services account for more than three quarters of employment in the country and includes key areas like insurance and finance which have shown sharp declines in activity. Slow growth in disposable income along with a flat labour market is likely to see hesitant spending this Christmas period as employees become more concerned about their future.
Commentators look to the services sector for the first signs of economic growth and that is unlikely to occur in the short term. QVM Traders will need to look for every advantage as we battle for limited disposable income in the lead up to Christmas.