Business activity revives in early June

Businesses have experienced a pick-up in activity so far this month with the service sector enjoying the fastest pace of growth in seven months, a survey showed on Friday.

The CBA-Markit purchasing management index (PMI) for services and manufacturing climbed to 53.1 in the first 19 days of June, up from 51.5 in the comparable May period.

Activity was underpinned by a solid increase in new business that was also the most marked since last November.

Panel members often commented on firmer underlying client demand, improved confidence and successful marketing campaigns, CBA said.

Business confidence for the year ahead improved to its highest since January, in part boosted by the surprise re-election of the Coalition in May’s federal election.

The improvement coincides with a pick-up in the struggling housing market where auction clearance rates have risen sharply so far this month while prices levelled out.

The PMI for services alone rose to 53.3, from 51.5, while manufacturing edged up to 51.7 from 51.0.

Services accounts form a far larger share of the economy.

AAP

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