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AUSTRALIA'S SERVICE SECTOR LIFTS IN APRIL: SURVEY.
SYDNEY, May 3 Asia Pulse - Activity in Australia's service sector picked up in April as consumer spending remained firm despite the recent rise in petrol prices, a survey found.
The Australian Industry Group - Commonwealth Bank performance of services index (PSI) rose 4.7 points to 56.3.
This was up from 51.6 in March.
A reading above 50 indicates expansion in the sector while a reading below 50 indicates contraction.
Commonwealth Bank chief economist Michael Blythe said consumer activity held up well during the early stages of the latest spike in petrol prices.
"Whether this resilience persists is shaping up as a key question for 2006/07," Mr Blythe said.
"A solid labour-market backdrop will help, but the risks lie with a return of the consumer caution that weighed on the economy in the second half of 2005."
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Source: HighBeam Research, AUSTRALIA'S SERVICE SECTOR LIFTS IN APRIL: SURVEY.