Activity in Australia's Services sector contracted to a 13-month low in May, according to a report Wednesday from the Australian Industry Group.
AIG's Performance of Services index fell 3.5 points to 40.6.
Readings below 50.0 indicate contraction of activity.
The May reading marked the 16th consecutive month of contraction for the services sector
AIG said the household-oriented sub-categories of its index were sluggish, including retail trade, which fell to 43.0 and accommodation/cafés/restaurants at 45.5.
The sales category fell to 37.9.
"Despite attempts to stimulate activity with low interest rates and despite the recent drop in exchange rates, the May Australian PSI shows that most service sub-sectors continued a sharp slide following some more promising indications back in March, said AIG Chief Executive Innes Willox. "The drop in service sector activity is particularly worrying as alternative sources of growth are now needed to make up for the loss of momentum as mining-related activity is set to peak and as commodity prices retreat further."
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