Services recession
AiG's Performance of Services Index nosedived by -5.3 points to a contractionary reading of 48.0 in September.
All sectors were lower, and most are now in contraction, according to AiG's latest release.
Capacity utilisation fell -4.6 points to a reading of 79.1, which is the lowest level since November 2021.
Average wages slowed, while sales prices slowed, putting pressure on margins.
AiG has previously reported that both house and apartment construction are very deeply into contractionary territory, pulling the construction performance gauge down to just 46.5, which also indicates contraction.
If you take that at face value, Australia's economy is already into recessionary territory.
It's probably a bit early to be calling a recession, but nevertheless it supports the RBA's decision to slow the pace of rate hikes, with the risks of a so-called wage price spiral melting away.
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A bit of more confident auction bidding in Melbourne (and also Adelaide) brought the preliminary auction clearance rate up to the highest level since May this weekend.
Prices are down - the price indices tend to operate with a significant lag - but the peak of the interest rate panic appears to have passed.
