Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Ongoing expansion in the service sector

Ongoing expansion in the service sector

Expansion in the service sector is at its highest level in the lead-up to Christmas, according to the Business NZ Performance of Services Index (PSI).

The November PSI stood at 62.6, which was 4.2 points above the October result. A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining. The survey has now been running for eight months, with previous results ranging from 55.2-59.4.

Business NZ chief executive Phil O’Reilly says the ongoing high values recorded for the new orders/business sub-index have now filtered through to strong activity overall as Christmas approaches.

“Although it’s difficult to compare these expansion levels with previous years, because the PSI began in April, it’s heartening to see activity at post-60 results, with the retail and wholesale sub-groups doing particularly well.”

“Comments from businesses pointed to a larger than expected influx of activity occurring earlier than expected, along with new areas of sales. There were also various comments relating to a pick up in staff numbers, which has certainly borne through with the employment index result,” he said.

For the third consecutive month, all five diffusion indices that make up the PSI continued to exhibit expansion. New orders/business (66.0) again led the way, with its highest value recorded to date. The remaining indices were also largely similar to the previous month, with three of the other four recording their highest ever value.

Activity by region was again strong in the top half of the North Island, with the Northern region (64.1) leading the November values with its highest ever result. Both the Central (61.9) and Otago/Southland (62.0) regions also experienced post-60 values.

Almost all service sectors showed expansion in November, with retail trade (70.2) exhibiting strong growth, followed by wholesale trade (67.5). Accommodation, cafes & restaurants (61.7) and property & business services (62.2) were the other sectors to produce a post-60 figure.

The lift in the rate of expansion was also reflected in the rise in positive comments received during November, which increased from 52.0% in October to 61.3% for the current month.

Click here to view the November PSI.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news