Oct. 5 (Bloomberg) -- Australia’s services industry shrank in September at a slower pace amid a rise in new orders and a gain in supplier deliveries.

The performance of services index rose 1.3 points to 49.3, Commonwealth Bank of Australia and the Australian Industry Group said in Sydney today. The figure is just short of the 50 level separating expansion from contraction.

Today’s report, which is based on a poll of about 200 companies, is similar to the U.S. non-manufacturing ISM index.

The report measures sales, new orders, deliveries, inventories and employment for companies such as banks, real estate agents, insurers, restaurants, transport firms and retailers to compile the overall performance of services index.

“While it is clear that a level of confidence is returning to the sector, we shouldn’t get ahead of ourselves,” said Australian Industry Group Chief Executive Heather Ridout. “The improvement is patchy and largely focused around sectors positively affected by the government’s stimulus measures and low interest rates.”

The index stood at 48 in August and 44.1 in July.

To contact the reporter for this story: Jacob Greber in Sydney at jgreber@bloomberg.net; Madelene Pearson in Melbourne on mpearson1@bloomberg.net

Last Updated: October 4, 2009 18:33 EDT