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

 

Restrictions Lifted: No Further Tau Flies Found

The Ministry for Primary Industries (MPI) confirms that all restrictions on the movement of fruit and vegetables in Manurewa, Auckland, due to the Tau fly, have been lifted as of 2.26pm on Sunday 7 February. More>>

Crowdfinding: Awaroa Beach To Become Public Land If Appeal Succeeds

Conservation Minister Maggie Barry says a privately-owned beach will become part of the Abel Tasman National Park if an online crowdfunding campaign to buy it succeeds... More>>

ALSO:

Meat Workers Union: Waitangi Mondayisation Flaunted By Large Employer Of Maori

At the AFFCO Talley owned meat plant in Rangiuru, the company has resorted to bullying and threats... saying they could be disciplined and their union sued for an unlawful strike if workers exercise their rights to a paid day off tomorrow. More>>

Earlier:

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news