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

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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