NZ services sector remains in expansion in July, PSI shows

Published: Mon 20 Aug 2012 11:26 AM
NZ services sector remains in expansion in July, led by new orders
Aug. 20 (BusinessDesk) - New Zealand’s services sector remained in expansion in July, though the pace eased for a second straight month. New orders/business continued to show the strongest growth.
The seasonally adjusted BNZ-BusinessNZ Performance of Service Index fell 0.8 points to 53.1 in July, following a 3.3 point decline in June.
The survey shows services are holding up better than manufacturing in the tepid New Zealand economy. The Performance of Manufacturing index, released last week, showed a contraction and the lowest reading for the month of July since 2008. A reading of 50 separates a contraction from an expansion.
The differences between the PSI and PMI “add to other economic information over the past few weeks that have brought more confusion than clarity as to how the economy is progressing,” said Bank of New Zealand economist Doug Steel. Still, “we are happy to stick with this moderate growth story until the general mix of indicators give a clear steer one way or another.”
New business/orders were 58.8 in the latest PSI, recovering some ground from June and remaining the leading sub-index for the 22nd straight month. Activity/sales fell 1.9 points to 52.3, while employment at52.5 and stocks/inventories at 51.5 were little changed from the previous month. Supplier deliveries were on 50.3.
The BNZ-BusinessNZ Performance of Composite Index, which combines the PSI and the PMI, recorded a GDP-Weighted Index drop of 0.6 points to 52.7 and the Free-Weighted Index down 0.6 points to 51.3.
Independent, Trustworthy New Zealand Business News
The Wellington-based BusinessDesk team provides a daily news feed for a serious business audience.
Contact BusinessDesk

Next in Business, Science, and Tech

Ongoing Monetary Tightening
By: Reserve Bank
Weekly Earnings Rise As More In Full-time Employmentstatistics new
By: Statistics New Zealand
Bell Gully: Uncertainty Ahead With New Unconscionable Conduct Legislation
By: Bell Gully
Authority Imposes Interim Restrictions On Very Large Electricity Contracts
By: Electricity Authority
Westpac Economic Overview, August 2022 – Pushing Through
By: Westpac New Zealand
Fisher Funds Acquires Kiwi Wealth Business
By: Kiwi Group Holdings
View as: DESKTOP | MOBILE © Scoop Media