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

 


NZ services sector activity eased in February

NZ services sector activity eased in February as new orders fell at a record rate

March 17 (BusinessDesk) – New Zealand services sector activity, which accounts for about two thirds of the economy, eased to a six month low in February, as new orders fell at the fastest rate since the survey began in 2007.

The BNZ-BusinessNZ Performance of Services Index slipped to a seasonally adjusted 53.1 in February from 57.8 in January and 55.7 a year earlier. A reading above 50 indicates expansion. The measure of new orders slowed to 56.1 from 66.8 in January, which was a six-and-a-half year high.

“The service sector has been fair humming along,” Bank of New Zealand economist Doug Steel said in a note. “Growth slowed in February, as can be understood following such a frantic pace in January. Looking through the monthly wiggles, growth trends in the service sector appear strong in early 2014.”

The seasonally adjusted BNZ-BusinessNZ Performance of Composite Index, which combines the services and manufacturing indices and representing sectors which account for more than three quarters of the economy, suggests New Zealand’s economy expanded at an annual growth rate of about 3 percent in the fourth quarter, accelerating to about 3.5 percent in the first quarter of this year, BNZ said.

New Zealand’s fourth quarter GDP report is scheduled for release on Thursday, with economists polled by Reuters expecting the economy expanded at a 3 percent annual rate.

In the latest services index, Canterbury/Westland underperformed, suggesting the region may be hitting capacity constraints as its unemployment rate hit a five-year low of 3.4 percent in the fourth quarter, which could signal rising inflation pressures, the BNZ’s Steel said.

Canterbury/Westland was the only region in contraction with an index of 43.4.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news