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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hepatitis A Link: Increased Surveillance Of Imported Frozen Berries

The Ministry for Primary Industries (MPI) Director General has issued a statement warning of a potential risk associated with imported frozen berries following four human cases of Hepatitis A thought to be linked to packaged imported frozen berries. More>>


Shocking Dairy Footage: MPI Failing Our Animals And Damaging Our Reputation

Greens “Nathan Guy needs to urgently look into how his ministry is enforcing animal welfare standards, how these appalling incidents happened under its watch and what it’s going to do prevent similar incidents happening again in the future." More>>


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news