New Zealand services sector activity, which accounts for about two thirds of the economy, rose for a second month in April to reach the highest in more than six years, led by new orders and sales.
The BNZ-BusinessNZ performance of services index rose 0.4 points to a seasonally adjusted 58.9 in April from 58.3 in March and up from 55.4 a year earlier. A reading above 50 indicates expansion.
The PSI survey comes after its counterpart for manufacturing, the PMI, fell last month, which was attributed to the Easter and Anzac holiday breaks both occurring in April, and keeps overall activity "at very healthy levels, based on the composite index, or PCI. Economists had questioned the level of consumer demand after retail sales growth slowed in the first quarter.
The PSI has "presented a more consistent growth pulse," said Bank of New Zealand economist Craig Ebert. The PSI and PMI surveys were "consistent with annual GDP growth of around 4 percent," he said.
All five sub-indexes which make up the PSI were in expansion in April, led by new orders/business with a reading of 65.7, followed by activity/sales with a reading of 62.2. Stock/Inventories were at 55.6 and supplier deliveries advanced to a 55.8 reading.
The seasonally adjusted BNZ-Business NZ performance of composite index, which combines the PSI and PMI and represents more than three quarters of the economy, was little changed at 58.5 and slipped 0.9 points to 57.3 on a free-weighted index.
Across New Zealand all regions were above 50, with Northern slipping to 58.1 and Central rising to 60. Otago/Southland fell 3.1 points to 56.3 and Canterbury/Westland rose 1.8 points to 60.3.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Facebook exec on info requests from NZ govt agencies: the numbers, and the criteria for forking over your data
- Concession on fees sees ANZ first onboard for Apple Pay
- EPL options narrow: Sky, beIN or nothing
- Coliseum bags investment from US giant Discovery, launches RugbyPass
- READER POLL RESULT: Will a land tax on foreign-based house buyers cool the housing market?
Most listened to
- Listen to the week’s top business news on NBR Radio’s week in review
- Matthew Hooton on Winston Peters’ plan to become prime minister
- Tim Hunter asks: Is the government planning to hand control of water to iwi?
- Rob Hosking breaks down the political and economic week that was: Has everyone gone tax mad?
- Rodney Hide on the technological development and economic advance in transport