Services growth slows in April, led by a drop in stock, supplier deliveries
BNZ-BusinessNZ performance of services index fell 1.1 points to 56.5.
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Growth in New Zealand's service sector, which makes up about two-thirds of the economy, slowed in April as stock/inventories and supplier deliveries dropped.
The BNZ-BusinessNZ performance of services index fell 1.1 points to 56.5, with all five sub-indices remaining above the 50 level that separates contraction from expansion. The April reading was lower than the same month a year earlier reading of 58.4.
"The key indicators of activity/sales and new orders/business remained over the 60-point mark, which bodes well for the short term in terms of growth," BusinessNZ chief executive Phil O'Reilly said. "However, its sister survey the PMI [manufacturing] has seen some inconsistent levels of expansion for 2015, so we will be monitoring whether this flows through to the PSI in the short-medium term."
Last week's manufacturing survey showed activity slipped in April although remaining in an expansionary mode for the 31st consecutive month. The BNZ-BusinessNZ performance of composite index fell 1.2 points to a GDP-weighted index reading 55.9, while the free-weighted index declined one point to 55.4.
Government figures showed spending on electronic cards dropped 1.1% in April, in part driven by a drop in consumers' retail spending. Meanwhile, first-quarter retail trade rose 2.7%, as cheaper fuel and a higher exchange rate boosted spending, Bank of New Zealand senior economist Craig Ebert said. He expects a slowdown in second-quarter retail trade, given the drop in spending on electronic cards.
Today's PSI showed stock/inventories slipped to a reading of 52.7 last month, from March's reading of 57.6. Supplier deliveries declined to 50.1 from 53.6, while employment slipped to 53.6 from 54.8. Activity/sales edged up to 60.4 from 60.1 while new orders/business increased to 62.6 from 60.9 in March.
(BusinessDesk)
Suze Metherell
Mon, 18 May 2015
Mon, 18 May 2015
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Services growth slows in April, led by a drop in stock, supplier deliveries
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