NZ service sector grows moderately in January
New Zealand's service sector grew moderately last month, with all sub-groupings recording expansion, but falling well short of optimistic consumer sentiment.The "new orders" sub-group recorded the highest index score, of 56.1, in the monthly BNZ
New Zealand's service sector grew moderately last month, with all sub-groupings recording expansion, but falling well short of optimistic consumer sentiment.
The "new orders" sub-group recorded the highest index score, of 56.1, in the monthly BNZ/BusinessNZ performance of services index.
A score over 50 represents expansion, while under 50 represents contraction.
The "activity/sales" category logged 53.1, while supplier deliveries scored 50.3.
While "new orders" logged the greatest expansion in January, the score for the category dipped below 60 for the first time since October, the figures indicate.
Taken as a whole, the sector scored 53.1 -- down 1.3 points from December, with expansion figures shrinking for the second month in a row.
"From a broader context, it was interesting that today's retail figures didn't live up to the hype of consumer confidence and expectations," BNZ economists said.
"But the "average" spending figures would seem to be in keeping with the reality of ongoing softness in employment and slowing wages."
Business NZ chief executive Phil O'Reilly said service businesses faced a number of seasonal factors at this time of year. Those reporting negative outcomes mainly encountered issues mainly around cash flow and lack of orders, he said.
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