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

 


NZ services sector activity expands in December

NZ services sector activity expands in December for eighth month

Jan. 27 (BusinessDesk) - New Zealand services sector activity picked up in December for its eighth monthly expansion, in the latest sign the economy is gathering momentum.

The BNZ-BusinessNZ performance of services index rose 1.1 points to 57.5 in December, and was up from 52.5 a year earlier. A reading of 50 or higher indicates the sector is in expansion, while a reading below 50 indicates a contraction.

The PSI was led by new orders/business at a reading of 62.4, up from 60.8 in November, followed by activity/sales which rose 1.5 points to 59.8. Stocks/inventories rose 3 points to 54.2 and supplier deliveries increased 2.4 points to 52.9. Employment was the only sub-index to drop, falling 1.8 points to a still expansionary 52.6.

“It suggests ongoing robust growth in the sector,” BNZ economist Craig Ebert said in a note accompanying the release. “December’s PSI harboured detail that suggested a pick-up in production is, in fact, gathering momentum.”

The seasonally adjusted BNZ-BusinessNZ performance of composite index, which combines the PSI with the performance of manufacturing index, rose 1.7 points to 57.5 on a GDP-weighted basis and was up 0.2 points to 56.9 on a free-weighted basis.

BNZ’s Ebert said the recent readings suggested a 4 percent annual pace of economic growth, and was in line with the New Zealand Institute of Economic Research’s quarterly survey of business opinion.

Today’s PSI showed the Central region experienced the fastest expansion with a reading of 61, followed by 57.4 in the Northern region, 55.1 in Otago/Southland and Canterbury/Westland at 52.6.

Retail trade was the most positive sector at 74.5, with property & business services at 57.5, wholesale trade at 57.3 and health & community services at 54.7. Transport & storage services contracted with a reading of 46.4 in December.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news