NZ services sector expansion slows in November, pointing to tepid recovery

(BusinessDesk) - New Zealand's services sector growth slowed last month after a surge in activity in October, and is another indicator underlining what's been a tepid economic recovery.

The BNZ-Business New Zealand performance of services index fell 4 points to 54.1 in November. A reading above 50 indicates a sector is growing and a reading below 50 indicates contraction. The survey comes after last week's performance of manufacturing index showed that sector muddling along last month.

"The latest PMI and PSI outturns reflect an economy that is continuing to struggle, but despite that struggle, is making slowing progress," said Stephen Toplis, BNZ head of research. "As we head into 2014 we see the cash rate moving progressively back towards neutral as inflation pushes higher than RBNZ (Reserve Bank of New Zealand) expectations."

The BNZ-BusinessNZ performance of composite index, which combines the manufacturing and services indices, fell 5.1 points to 52.2 on a GDP-weighted basis, and 3.9 points to 51.2 on a free-weighted basis.

New orders/business grew at the fastest pace among the sub-groups at 58.1, followed by new activity/sales at 55.4, supplier deliveries at 52.22 and finished stocks at 51.7. Employment was the only sub-group to contract at 49.9.

The Otago/Southland region reported the fastest growth in the services sector at 61.7, followed by Northern at 61, then Central at 5. Canterbury/Westland activity shrank in the month, with a reading of 43.3.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7733 -0.0013 -0.17%
AUD 0.9501 -0.0003 -0.03%
EUR 0.6313 -0.0023 -0.36%
GBP 0.4955 -0.0002 -0.04%
HKD 5.9975 -0.0098 -0.16%
JPY 92.7030 0.1190 0.13%

Commods

Commodity Price Change Time
Gold Index 1195.4 -2.890 2014-12-19T00:
Oil Brent 61.4 1.580 2014-12-19T00:
Oil Nymex 57.1 2.910 2014-12-19T00:
Silver Index 16.0 0.096 2014-12-19T00:

Indices

Symbol Open High Last %
NZX 50 5527.8 5553.7 5527.8 0.25%
NASDAQ 4759.0 4779.2 4765.4 0.20%
DAX 9827.3 9924.0 9787.0 0.81%
DJI 17812.2 17911.6 17804.8 0.49%
FTSE 6545.3 6620.9 6545.3 0.48%
HKSE 23264.0 23478.9 23116.6 1.26%
NI225 17685.5 17692.6 17621.4 0.08%