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

 


Cold snap

Cold snap


Expansion in the services sector eased back during May, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for May was 54.2. This was down 4.3 points from April, although still showing higher expansion than the February result (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). The PSI has averaged 56.4 points so far for 2014.

BusinessNZ chief executive Phil O’Reilly said that easing expansion levels should not undermine the fact that the sector is still in positive territory.

“While sales activity was not as solid as the previous month, new orders/business remained strong, which was a consistent theme in the type of positive comments received from respondents. On the flip side, negative comments did not display any strong trend, apart from typical seasonal/weather related issues this time of year”.

“Overall, given the fact that nearly 60% of comments received were along a positive line confirms the sector remains in good heart”.

BNZ Economist Doug Steel said the service sector was part of likely above-trend economic growth in Q1 this year and the PSI suggests more of the same in Q2, despite easing in May.

Despite the dip in expansion levels, four of the five main sub-indices were still in expansion during May. New orders/business (60.6) reduced 5.5 points from April, but remained in strong territory for expansion. Activity/sales (54.3) slipped 7.2 points to record its lowest result since January 2013. Employment (52.4) continued to edge downwards, while stocks/inventories (53.1) fell 2.6 points. Supplier deliveries (49.5) went into slight contraction for the first time since January.

Activity remained positive throughout the country. In the North Island, the Northern region (55.5) reverted back to levels seen in August 2013, while the Central region (51.2) fell back after three consecutive months of solid results. In the South Island, the Canterbury/Westland region (54.5) remained in positive territory despite easing expansion, while the Otago/Southland region (51.3) managed to keep its head above water with minor expansion.

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for May saw the two options for measuring the PCI both ease from the previous month, although they remain in expansion. The GDP-Weighted Index (54.0) decreased 4 points the previous month, while the Free-Weighted Index (54.3) dipped 2.7 points.

Click here to view the PSI time series data

Click here to view the PCI time series data


ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news