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

 


NZ services sector expands in June, rounding out buoyant 2Q

NZ services sector expands in June, rounding out buoyant second quarter

By Suze Metherell

July 14 (BusinessDesk) - New Zealand service sector activity, which accounts for about two thirds of the economy, rose in June to round out a second quarter almost as buoyant as the first three months of the year.

The BNZ-BusinessNZ performance of services index rose 0.6 points to a seasonally adjusted 54.7 in June, from 54.1 in May and down from 55.2 a year earlier. A reading above 50 indicates the sector is in expansion, while the average for the first half of the year was 56.1 points.

Today's reading comes after the PSI's manufacturing counterpart, the BNZ-BusinessNZ performance of manufacturing index rose from an 18-month low in May. Both indexes have been in expansion over the past year, but the levels have eased in recent months while remaining above long-term averages.

The composite index, which combines the PSI and PMI, was steady in June. The GDP-weighted index increased 0.6 points to 54.5, below the 55.2 reading in the same month last year, while the free-weighted index was unchanged from May at 54.1, lower than the reading of 55.3 a year earlier.

"Many economic indicators have been going gangbusters over the past 12 months, pointing to strong growth," senior Bank of New Zealand economist Doug Steel said in a note. "More recently, there have been a few hinting at some degree of cooling, but to levels that are still above average."

June's PSI reading is in line with service sector indicators in the New Zealand Institute of Economic Research's Quarterly Survey of Business Opinion for the second quarter, released last week, which showed the measure of business confidence dropped from an 18-year high, while remaining well above average, Steel said.

"It means the balance of service sector firms is still markedly optimistic, but just not quite as optimistic as they were in the first quarter," BNZ's Steel said.

All five of the sub-indexes which make up the PSI were in expansion in June, with supplier deliveries at 53.5 returning to expansion after a contraction in May. New orders/business led activity at 58.3, slightly down from May's 60.6 reading, while stock/inventories rose to 55.2, activity/sales lifted to 54.7 and employment increased to a reading of 54.2.

Across New Zealand all regions were above 50 in June, with Central leading the pack at 58.3 points, while Northern dipped to 52.8 from last year's reading of 54.9. Canterbury/Westland was 52.3 and Otago/Southland was 56.1.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news