Sharechat Logo

NZ services sector expands for a third month, paced by new orders: PSI

Monday 15th February 2010

Text too small?

New Zealand’s service sector expanded for a third month, albeit at a milder pace, adding to signs the economy’s recovery from recession will be gradual.

The BNZ-Business New Zealand Performance of Service Index (PSI) fell 1.3 points to 53.1 on a scale where a reading of 50 separates contraction from growth. New orders expanded 56.1, the first time since October the index has read below 60.

The survey showed a split between those who had a bumper Christmas and those that experienced a disappointing peak festive season. It follows government figures on Friday that showed the volume and value of retail sales climbed a tepid 1% in the fourth quarter as competition for sales spurred price cuts.

“Discounting obviously helped boost sales volumes and cull inventories, but there’s still some catching up to do to reach the optimistic expectation levels shown in market polls,” said BNZ senior economist Craig Ebert. The gain in January’s PSI “fell disappointingly short of soaring consumer confidence.”

All five of the diffusion indexes in the PSI gained in the latest month, though the expansion abated compared to December. Activity/sales fell from 55.1 to 53.1, down from 58.7, employment gained from 51.1 to 52.7 and stocks/inventories were unchanged at 50.3. Deliveries fell from 52 to 50.3.

Among service sectors, accommodation, cafes and restaurants sank to 50.6, while property and business services remained in contraction at 48.6. Transport and storage rose 2.2 points to 56.9 and retail trade was at 55.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Fletcher Building Announces Director Appointment
Meridian issues new demand response exercise notice to NZAS
CRP - Chatham Closes Private Placement of Shares
General Finance - Olympic Term Deposit Promotion featuring a Special Bonus of 0.1%
July 22nd Morning Report
VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report