Sharechat Logo

NZ services sector stalls in August

Monday 17th September 2012

Text too small?

New Zealand's services sector stalled in August, led by a fall in employment and activity and sales, according to the BNZ-BusinessNZ performance of services index (PSI).

The index was 50 in August from a revised 52.4 points in July. A reading above 50 indicates expansion. That's the lowest value for the month of August since 2008.

The decline was led by employment, down 5.8 points to 46.5, at its lowest point since July 2009; followed by activity and sales slipping 0.8 points to 51; and supplier deliveries on 46.6 points. New orders and business was still the strongest category, at 55.4 points, despite easing to its lowest level since December 2011. Stocks and inventories rose 0.5 points to 51.8.

"The international economy has been slowing over recent months, especially in its industrial sectors, related to a cooling in capital investment," BNZ senior economist Craig Ebert said in a statement. "Moreover, the New Zealand dollar has been, and still is, high."

The kiwi recently traded at a six month high of 82.85 US cents.

Last week's performance of manufacturing index slipped further into contraction on 47.2 points, with employment at its lowest since July 2009, suggesting weaker demand for exports and a resilient kiwi dollar are hurting companies.

On a regional basis, the Northland region PSI rating slipped to 49.4 points, its lowest level since October last year, while Canterbury/Westland fell back into contraction after 12 consecutive months of expansion on 47.9 points. The Central region bucked the trend on 57.9 points.

The GDP-weighted performance index, which combines the manufacturing and services indices, decreased a further 2 points to 51.4 points in August.

  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:

Sky CEO put on notice by chunky vote against salary share scheme
Unions gearing up to oppose 'market tests' on Fair Pay Agreements
Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals

IRG See IRG research reports