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 Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news