Service sector activity expands in August

Australian service sector activity expanded in August, with the Australian Industry Group's Performance of Services Index staying above the 50-point level.

Australian services sector activity has continued to expand for the sixth straight month, but the rate of expansion has slowed.

The Australian Industry Group's Performance of Services Index (PSI) fell 3.4 points to 53.0 points in August, but stayed above the 50-point level signifying expansion.

Ai Group chief executive Innes Willox said sales, new orders, employment and capacity utilisation all lifted in August, but consumer inflation remained subdued with selling prices falling in the month.