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

 


Sun shines on service sector

Media release
18 March 2013


Sun shines on service sector


The service sector continued to show a pick-up in expansion, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for February was 55.5. This was up 2.7 points, following a 1.1 increase in January (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). Compared to previous February results, the 2013 value was the highest since the survey began in 2007.

BusinessNZ chief executive Phil O’Reilly said that the February result was pleasing to see after a pick-up in activity at the start of the year.

“Expansion was generally across the board, with the main diffusion indices all showing stronger growth. In addition, the proportion of positive comments from respondents (64.8%) increased markedly from January (52.7%), with the current long fine period throughout the country providing the largest proportion of comments on increased business activity.

“There is no doubt that the current dry weather is having an adverse effect on certain parts of the economy, as shown by the increasing number of drought declared regions. Therefore, it is important that other sectors of the economy are able to maximise conditions to keep the economy moving.”

BNZ senior economist Craig Ebert said, “This latest PSI result continues to stake a claim on solid economic recovery and, together with the PMI, is consistent with firm GDP growth into the early part of 2013. With the economy facing many challenges such as drought and the high exchange rate, this is key and timely information. The combined PMI and PSI result gives some confidence we’re right to remain positive, overall.”

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for February saw both options for measuring the PCI increase in expansion for the second consecutive month. The GDP-Weighted Index (55.5) increased 2.2 points from January, while the Free-Weighted Index (55.9) rose 1.7 points over the same period. This was the highest result for the GDP measure since October 2012, and the highest for the Free-Weighted measure since May 2012.

All five main sub-indices were in expansion during February, compared with two last month. Again, leading the way was new orders/business (59.6), while activity/sales (55.4) also experienced an increase from January. Employment (52.5) picked up 2.4 points from the previous month, and its highest result since April 2012. Stocks/inventories (53.3) also produced its strongest value since April 2012, while supplier deliveries (55.8) increased significantly, reaching its highest value since June 2007.

All activity by region was in expansion mode during February. In the North Island, the Northern region (56.5) picked up 5.6 points after two consecutive months of slipping expansion levels. However, the Central region (54.5) produced an all but identical result from January. In the South Island, the Canterbury/Westland region (59.1) experienced its third consecutive increase in activity to record expansion for the current month, while the Otago/Southland region (61.9) bounced back after a dip in January.

Link to the February PSI & PCI
Link to PSI time series data
Link to PCI time series data

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news