Sharechat Logo

NZ services sector dips in June, activity/sales down

Monday 17th July 2017

Text too small?

New Zealand's services sector, which accounts for about two-thirds of the economy, dipped slightly in June, though economists say signs are still good for economic expansion.

The BusinessNZ-Bank of New Zealand performance of services index dipped 0.2 points to 58.6 in May. A reading of 50 separates expansion from contraction, and New Zealand's services sector has been in expansion since July 2010. The index had bounced 5.6 points in May, after a combination of school holidays and unseasonably wet weather weighed on activity in April.

"The big rebound that the performance of services index (PSI) traced in May pretty much stuck fast in June," said Bank of New Zealand senior economist Craig Ebert. "With respect to GDP, the recent results of the PSI are obviously supportive of ongoing solid expansion."

Three of the five sub-indices were higher in June, with supplier deliveries up 1.9 points to 57.4, new orders/business gaining 0.9 points to 64.1 and stocks/inventories rising 0.5 points to 55.2. Activity/sales dropped 3.5 points to 59.4, giving up some of its 11 point gain from May, while employment dipped 0.2 points to 54.2.

The PSI follows its sister survey, the performance of manufacturing index, which showed New Zealand's manufacturing activity slowed in June as as firms reined in employment in the face of growing labour shortages. The Bank of New Zealand-BusinessNZ performance of manufacturing index was a seasonally adjusted 56.2 in June, down 2 points from May.

The composite index, which marries the two surveys, dipped 0.6 points to 58 on a GDP-weighted basis and dropped 1.5 points to 57.6 on a free-weighted basis

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

NZ dollar heads for 1.2% weekly fall as greenback finds favour on rate hike view
Seeka annual profit falls 44% on lower kiwifruit volumes, impaired banana business
Pyne Gould first-half profit gains on Wilaci settlement
Steel & Tube may be interested in Fletcher assets if review prompts sales, CEO Malpass says
Northport upbeat on regional fund, helps lift Marsden Maritime 1H profit 5.4%
Countdown supermarkets 1H earnings fall 7.7% on rising cost of investment
Regional growth fund trickle today becomes avalanche in election year
Port of Tauranga's Cairns says export growth in 1H suggests 'economy in not too bad a shape'
NZ quarterly retail sales rise 1.7% in 4th-qtr, adding to upbeat electronic cards data
Kiwibank first-half profit sinks 32% as IT costs mount

IRG See IRG research reports