News | Business
24 Mar 2018 21:22
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Finance
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    NZ services sector activity bounces back

    New Zealand's services sector, which accounts for about two-thirds of the economy, bounced back in May after a number of external factors corrected themselves.

    New Zealand's services sector, which accounts for about two-thirds of the economy, bounced back in May after a number of external factors corrected themselves.

    The BusinessNZ-Bank of New Zealand performance of services index rose 5.6 points to 58.8 in May.

    A reading of 50 separates expansion from contraction, and New Zealand's services sector has been in expansion since July 2010.

    "It turned out that New Zealand's performance of services index (PSI) had a bungee cord tied firmly around its ankles. And so, having dropped precipitously to 53.2 in April, it bounced all the way back up to 58.8 in May," said Bank of New Zealand senior economist Craig Ebert.

    In April, a combination of school holidays and unseasonably wet weather were seen as weighing on activity.

    Four of the five sub-indices were higher in May with activity/sales at 63.1 versus 52.4, new orders/business at 63.2 versus 55.5 in April, stocks/inventories at 54.9 versus 46.4 and supplier deliveries at 55.4 versus 48.2. Only employment was lower at 54.4 versus 55.7.

    Across the regions, Northern services activity rose 7.1 points to 59, while Central rose 3.5 points to 59, Canterbury/Westland rose 4.3 points to 57.8 while Otago/Southland rose 5.5 points to 54.9.

    The PSI follows its sister survey, the performance of manufacturing index, which showed manufacturing activity expanded in May, reaching the highest value since January 2016 and boding well for second-quarter economic growth.

    The Bank of New Zealand-BusinessNZ performance of manufacturing index was a seasonally adjusted 58.5 in May, 1.6 points higher than in April.

    The composite index, which marries the two surveys, rose 4.7 points to 58.5 on a GDP-weighted basis and gained 4.5 points to 59.3 on a free-weighted basis.


    © 2018 NZN, NZCity

     Other Business News
     24 Mar: Lance O'Sullivan calls for pokies ban
     23 Mar: Armed bank robbery in Whangarei
     23 Mar: Tait wins London bus radio contract
     23 Mar: Auckland sees surge in Chinese tourists
     23 Mar: Robotics Plus gets Yamaha backing
     23 Mar: Kiwi down on yen and greenback
     22 Mar: NZ dollar gains against Australian dollar
     Top Stories

    Isaako channels Dan Carter in record night More...

    Lance O'Sullivan calls for pokies ban More...

     Today's News

    Kevin Smith has lost 20lbs since his near-fatal heart attack 21:15

    Hamilton claims Aussie GP pole position 21:15

    Sexual assault allegations against Ed Westwick are being reviewed by authorities 20:45

    United prepared for NBL 'war' in Adelaide 20:25

    Emily Blunt thought she would "die" when she had to fly as Mary Poppins 20:15

    Ellie Goulding will attend Prince Harry's wedding to Meghan Markle 19:45

    Silver Ferns still chasing netball gold 19:45

    Owen Wilson allegedly caused an entire hotel to be evacuated 19:15

    Major titles decided at Maadi Cup regatta 18:55

    Queen Latifah's mother has died 18:45

     News Search

    Power Search

    © 2018 New Zealand City Ltd