2012.06.0500:00:00UTC+00Australia Service Sector Contraction Eases In May

Australia's service sector continued to contract in May, but at a slower pace compared to the previous month, a report from the Australia Industry Group showed Tuesday.

The latest Australian Industry Group/Commonwealth Bank Australian Performance of Services Index rose by 3.9 points to 43.5 in May. Readings below 50 represent a contraction in activity.

The new orders sub-index increased in May to 40.4, but still remained in negative territory. Service sector employment continued to contract during the month with the corresponding index dropping 2.6 points to 44.