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

 


NZ service sector activity keeps expanding in January

NZ service sector activity keeps expanding in January, driven by new orders

Feb. 17 (BusinessDesk) - New Zealand services sector activity, which accounts for about two thirds of the economy, expanded for a ninth month in January, underpinned by a six-and-a-half year high in new orders.

The BNZ-BusinessNZ performance of services index increased 0.5 points to 58.1, the highest level since November 2007, and was up from 53.3 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 with a reading of 66.1, its highest level since June 2007, followed by activity/sales with a reading of 63.2. Employment rose 2.6 points to 55.2. Supplier deliveries fell into contraction with a reading of 47.7 from 52.9 in December, as did stocks/inventories with 45.6, down from 54.2.

“The surge in new orders fits with the other story of the latest PSI, that of inventory slimming at a rate of knots,” BNZ economist Craig Ebert said in his note. “In short, service sector firms look to be caught short on this account.”

Still, Ebert said that was a sign of “surprisingly strong upswing in demand.”

The seasonally adjusted BNZ-BusinessNZ performance of composite index, which combines the PSI with the performance of manufacturing index, increased 0.2 points to 57.9 on a GDP-weighted basis, and was up 0.4 points to 57.4 on a free-weighted basis.

Today’s PSI showed Otago/Southland had the fastest expansion at 60.2, followed by 57.9 in the Northern region, while Canterbury/Westland was at 50.1. The Central region experienced its first contraction since March with a reading of 48.6.

Retail trade remained the most positive sub-sector at 66.3, followed by wholesale trade at 62.1 and accommodation, cafes and restaurants at 61.4. Property and business services reported a 52.2 reading and transport and storage 50.1. Health and community services activity showed a contraction at 44.7, due to the summer holiday break.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Oil: 2017 Block Offer Petroleum Tender Launched

New Zealand is well-placed to take advantage of the economic benefits of oil and gas exploration, Energy and Resources Minister Judith Collins announced today at the launch of the 2017 Block Offer petroleum tender. More>>

ALSO:

OECD And Zero Carbon Reports: Environmental Pressures Rising In New Zealand

New Zealanders enjoy a high environmental quality of life and access to pristine wilderness. However, New Zealand’s growth model, based largely on exploiting natural resources, is starting to show its environmental limits with increasing greenhouse gas emissions and water pollution ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news