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

 


Holding pattern - PSI for August 2013


Media release
16 September 2013

Holding pattern

New Zealand’s services sector displayed a lower level of expansion after recent record results, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for August was 53.2.  This was down 5.0 points from July, and the lowest level of activity since January this year (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  Compared to previous August results, the 2013 value was up on 2012, but lower than 2011.  So far in 2013 the PSI has averaged 54.5.

BusinessNZ chief executive Phil O’Reilly said an August figure that trumped July’s result would have been remarkable given the previous month’s result was the highest since 2007.  However, the August value continues the story evident during 2013 of solid growth.

“The lower level of expansion during August meant the proportion of positive comments dropped from 62% in July to 54% for the current month.  Of those who provided positive comments, many outlined the general positive business environment at present, along with a more buoyant attitude.  For those who provided negative comments, many cited competitive pressures.

BNZ Economist Doug Steel said the overall positive trends in the service sector imitate those in the manufacturing, building and agriculture sectors. It all bodes well for stronger economic growth ahead, after what appears to have been a soft Q2. The positive overall economic picture makes it difficult to get too downbeat on some of the softer detail in August’s PSI survey. Still, they are worth monitoring.

Despite the dip in the level of expansion, none of the five main sub-indices were in decline during August, which has now been the case for the last four months.  New orders/business (55.2) and activity/sales (55.2) were tied for the highest level of activity for August, while stocks/inventories (53.6) and supplier deliveries (53.4) also produced similar levels of activity.  Employment (50.0) gave up its gain from July to return to a position of no change as in June.

There was a clear difference in activity levels between the North and South Islands.  In the North Island, the Northern region (55.5) led the way, despite falling 7.1 points from July.  The Central region (53.5) improved 3.0 points, with its highest value since April 2013.  In the South Island, the Canterbury/Westland region (42.1) fell back further from July, while the Otago/Southland region (36.5) experienced a significant drop for August, due to low activity and new business. 

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for August saw both options for measuring the PCI return to more familiar levels of expansion after a stellar result for July.  The GDP-Weighted Index (54.0) decreased 4.4 points from July, while the Free-Weighted Index (55.6) fell 3.6 points over the same period.  The fact that both the manufacturing and services sectors experiencing a lower level of expansion during August meant both measures also fell accordingly.

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

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news