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

 


Holding the line

Media release

14 July 2014

Holding the line

The services sector showed improved expansion levels in June, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for June was 54.7. This was up 0.6 points from May, with the PSI has averaged 56.1 points so far for 2014 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).

BusinessNZ chief executive Phil O’Reilly said that after a dip in expansion during May, the pick-up in expansion levels for June was based on various factors.

“While new orders/business experienced another slip in expansion levels, the other main sub-indices all improved during June. Also, the proportion of positive comments rose in June (62.1%), with most comments focussing on market growth, new customers and favourable seasonal patterns”.

BNZ Economist Doug Steel said the PSI has been a touch softer over recent months but remains above average and is consistent with ongoing optimism in the service sector.

All five main sub-indices were in expansion during June. New orders/business (58.3) reduced a further 2.0 points from May, but remained in strong territory for expansion. Activity/sales (54.7) rose 0.6 points after a dip in expansion during the previous month. Employment (52.4) also picked up, while stocks/inventories (55.2) rose 1.9 points. Supplier deliveries (53.5) went back into expansion after a slight contraction in May.

Activity remained positive throughout the country for the fourth consecutive month. In the North Island, the Northern region (52.8) dipped 2.7 points, while the Central region (58.3) recovered after a drop in expansion levels in May. In the South Island, the Canterbury/Westland region (52.3) remained in positive territory despite further easing of expansion, while the Otago/Southland region (56.1) picked up to levels similar to April.

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for June saw the two options for measuring the PCI improving for one, and holding steady for the other in comparison with the previous month. The GDP-Weighted Index (54.5) increased 0.6 points the previous month, while the Free-Weighted Index (54.1) remained exactly the same as May.

Link to PSI time series data

Link to PCI time series data

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

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:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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