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

 


Sensational Summer

Sensational Summer

Activity in the services sector continued its march upwards with some levels of activity not seen since 2007, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for January was 58.1. This was up 0.5 points from December, and the highest level of activity since November 2007 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). Over the last 6 months, the PSI has averaged 56.5.

BusinessNZ chief executive Phil O’Reilly said that the positive start to the year was built on expansion levels not seen for a number of years.

“In addition to the overall index at a seven year high, the key sub-indices of new orders/business and activity/sales were also the highest since 2007. With positive comments coming from over two-thirds of respondents during January, this augers well for continued expansion in the months ahead.”

BNZ senior economist Craig Ebert says “New orders are going nuts in New Zealand’s services sector. This suggests people have not only come back from holidays full of confidence, but are now making things happen.”

Three of the five main sub-indices were in expansion during January, which breaks an eight month cycle of all indices being in expansion. However, the drop in stocks/inventories (45.6) and supplier deliveries (47.7) is not unexpected given seasonal effects around this time of year. Of those expanding, new orders/business (66.1) broke free of a low 60-point value to record its highest result since June 2007. Activity/sales (63.2) picked up a further 3.1 points from November to record its highest level since August 2007. Employment (55.2) also showed further expansion, with its best result for 21 months.

Activity was positive across most of the country in January. In the North Island, the Northern region (57.9) displayed similar levels of activity compared with December, while the Central region (48.6) experienced its first decrease in activity since March 2013. In the South Island, the Canterbury/Westland region (50.1) only just managed to keep its head above water, while the Otago/Southland region (60.2) recorded a post 60-point value for the second time in three months.

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for January saw both options for measuring the PCI tick up from the previous month. The GDP-Weighted Index (57.9) increased 0.2 points from December, while the Free-Weighted Index (57.4) rose 0.4 points. The fact that the services sector showed stronger expansion in January meant the GDP index continued to keep its nose in front in terms of expansion.


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

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news