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

 


NZ service sector expands in July, holding above average

NZ service sector expands in July, holding above long-term average

By Paul McBeth

Aug. 18 (BusinessDesk) - New Zealand service sector activity grew at a faster pace in July, holding above its long-term average, and fuelling firms' appetite to invest back into their business.

The BNZ-BusinessNZ performance of services index rose 3.2 points to 58.4 in July, taking the year's average to 56.5 points. The service sector, which accounts for about two-thirds of the economy, has been in expansion since July 2010, and activity was led by new orders/business in the month.

"This is consistent with output accelerating to an above-trend pace," BNZ economist Craig Ebert said in his report. "It is little wonder, then, that service sector firms are looking to invest more in plant machinery and equipment while also intending to take on more staff."

New Zealand's economy has been supported by high commodity prices, escalating construction activity and inbound net migration, which spurred the central bank to raise interest rates through the first-half of the year to head off inflation.

Today's report follows the performance of manufacturing survey, which showed industrial production ebbed in July, while continuing to expand for a 22nd month. The performance of composite index, which combines the two measures, rose 2.6 points on a GDP-weighted basis to 57.5, and 1.3 points to 55.7 on a free-weighted basis.

All five sub-indices in the PSI were in expansion in July, with new orders/business up 5.3 points to 64.1 and activity/sales up 6.4 points to 61.4. Employment was at 54, stocks/inventories fell 1.9 points to 53.1, while supplier deliveries rose 2.6 points to 56.5.

Activity was positive across the country, with the Northern region up 5.5 points to 58.3, and Central at 60.1. Canterbury/Westland rose 5.2 points to 57.5 and Otago/Southland was 65.4.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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