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

 

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Callaghan Innovation: Investment To Help Deepen Innovation Reporting

Callaghan Innovation, the government’s high tech HQ for Kiwi business, is to help deepen New Zealand media coverage of the commercialisation of innovation through an arms-length partnership with independent business news service BusinessDesk. More>>

ALSO:

Tax Credits, Grants: Greens $1Bn R&D Plan

In the Party’s headline economic announcement, the Greens have launched their plan to build a smarter, more innovative economy which has as its centrepiece an additional $1 billion of government investment in research and development (R&D) above current spend, including tax breaks for business. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news