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Improving Economic Signs Prior to Victorian Lockdown

by | Fri, Aug 7 2020

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The pace of contraction in Australia’s services sector and business more broadly slowed in July, but that was before Victoria went into its harsher lockdown to battle the coronavirus.

The Australian Industry Group’s Australian performance of services index rose 12.5 points in July.

But at an index of 44.0 points it remains below the 50-point mark that separate contraction from expansion.

This slower contraction follows three months of exceptionally low results, including a record low in April.

Similarly, its business index rose 11.1 points to 44.7 point.

Ai Group chief executive Innes Willox said these were further evidence that the national economy was stabilising before the Victorian shutdown.

“The extraordinary Victorian lockdown and reactions by other states and territories in the light of the outbreak of COVID-19 infections will weigh heavily against any optimism interpretations of the improvement,” he said releasing the data on Friday.