Ai Group’s latest Economics research note presented a strong relationship between the Australian PSI® and various ABS data on the services sector and the economy more generally.
For example, movements in the Australian PSI® are closely aligned with annual growth rates in ABS real Gross Domestic Product (GDP), real Domestic Final Demand (DFD), services gross value added (GVA) and nominal sales. This is to be expected, since the services industries collectively contribute up to 75% of the real output of the Australian economy.
Our research analysis also found a ‘leading’ margin for a number Australian PSI® series in addition to the headline results.
For further details, read the full report