Service sector stagnant?
The service sector may struggle to show strong growth in the near future, BusinessNZ says.
The service sector may struggle to show strong growth in the near future, BusinessNZ says.
BusinessNZ chief executive Phil O'Reilly says the latest BNZ BusinessNZ Performance of Services Index (PSI) shows it has stayed in positive territory for 26 consecutive months, although it has struggled to achieve any more than moderate levels of expansion during that time.
The PSI for December is 50.6, down 5.6 points from 56.2 in November, and 0.2 points lower than the October result.
A PSI reading above 50 indicates the service sector is generally expanding, while a reading of below 50 shows it is declining.
The average PSI value over 2011 is 52.6.
Although that is better than the 48.8 recorded for 2009, it is lower than the 53.2 recorded for 2010.
Bank of New Zealand senior economist Craig Ebert says the December PSI provided a sense of ongoing progression, underscored by its employment component remaining in expansion territory.
“This survey’s constructive view on staffing is encouraging, and corresponds with other surveys produced in the last couple of months, all signalling ongoing growth on the jobs front.”
Colin Williscroft
Mon, 30 Jan 2012
Mon, 30 Jan 2012
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Service sector stagnant?
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