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


Pause for thought

Pause for thought

While continuing to expand, activity in the services sector lost some impetus during February, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for February was 53.1. This was down 4.7 points from January, and similar to levels of expansion last seen in August 2013 (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 although there was a more moderate level of expansion for February, the sector remains in a healthy position.

“The proportion of positive comments was similar to last month, with two-thirds of respondents indicating their major influence on business activity assisted their operations during February. Also, the key indicators of production, new orders and employment are still at solid levels of expansion.

“It is also useful to point out that the February results here are in good company with other countries, as growth of global services sector slowed, with a number of countries slipping back into contraction territory.”

BNZ economist Doug Steel said the February PSI results looked a bit soft at face value, but only when lined up against the exceptional strength from January. “Looking through the monthly wiggles, growth trends in the service sector appear strong in early 2014.”

Like last month, three of the five main sub-indices were in expansion during February. New orders/business (56.1) recorded its first sub-60 point value since August 2013, while activity/sales (55.3) also recorded a sub-60 value after reaching 62.9 in January. Employment (53.6) dropped 1.4 points from January, although still showed encouraging growth. Stocks/inventories (48.4) improved 2.5 points from January, while supplier deliveries (49.7) rose 2 points.

Activity was positive across most of the country in February. In the North Island, the Northern region (57.7) displayed similar levels of activity compared with both December and January, while the Central region (59.7) recovered from a lacklustre January to come close to reaching the 60-point mark. In the South Island, the Canterbury/Westland region (43.4) again fell back into contraction, while the Otago/Southland region (54.0) recorded a lower level of expansion.

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for February saw both options for measuring the PCI at a lower level of expansion compared with recent months. The GDP-Weighted Index (53.5) decreased 4.1 points from January, while the Free-Weighted Index (55.3) fell 1.9 points.

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


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news