Services sector activity continues on up

NZPA

Monday 18th July 2011

Activity in the services sector has reached its highest level since last September, with new orders and sales showing the best performance in at least a year.

The seasonally adjusted BNZ--BusinessNZ performance of services index (PSI) for June was 54.7, up 1.7 points from May and the fifth consecutive month of improved expansion. A PSI reading above 50 points indicates services activity is expanding.

The new orders/business sub-index had a reading of 58, its highest level since June 2010, while the activity/sales sub-index was at 57.7, the best level since March 2010.

Health and community services at 56.7, and property and business services at 57.9 were continuing an expansionary path.

Retail trade at 42.5, along with accommodation, cafes and restaurants at 49.4 showed some improvement despite still being in contraction.

BusinessNZ chief executive Phil O’Reilly said that the June result represented another step in getting the services sector back on track after a rocky three years.

Adding into the mix further earthquake-related recovery work and the Rugby World Cup should mean additional boosts to activity.

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