Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Wednesday, 5 August 2015

Services index jumps to 54.1

Interesting indicators from AIG this week.

Not only is manufacturing surprisingly now expanding (a reading of above 50 denoting expansion), the performance of services index too has jumped to 54.1.

The performance of the massive services sector is key to employment growth and therefore the strength of the economy.

According to Business Insider the July 2015 reading of 54.1 is the strongest since February 2014, and on a 3 monthly average basis is the best result since 2009.

Great to see that all five sub-indices are increasing.

More from our friends at Business Insider here.

Tomorrow we'll find out if this is being translated into ongoing jobs growth in the service sector as the latest round of Labour Force data is released.

Market consensus sees the unemployment rate at 6.1 per cent.