A business-friendly federal budget and May interest rate cut appears to have had little impact on the services sector.
The Australian Industry Group's Performance of Services Index (PSI) edged down 0.1 of a point to 49.6 in May, remaining close to the 50 level, which separates expansion from contraction.
Ai Group chief executive Innes Willox said the survey's respondents raised concerns about ongoing weakness in income growth and spending.
"Subdued business confidence, a poor economic outlook, and a low appetite for spending and investment, continue to weigh adversely on demand for a wide range of business services," he said.
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