The services sector continues to show solid expansion, with employment showing a sizeable lift, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
The PSI for August was 57.9. Although this was down 0.5 points from July, it continues to show healthy activity in the sector, with an average monthly result of 56.6 so far for 2014 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).
BusinessNZ chief executive Phil O’Reilly said that the sub-indexes of the survey painted a positive picture of where the sector currently sits.
“Employment was at its highest level since the survey began in 2007, as was supplier deliveries. Also, stocks/inventories displayed its second highest result. Combined with positive results for the remaining sub-indexes, the August result was a consistent performer with all regions of the country also in positive territory”.
BNZ senior economist Craig Ebert said “Confidence remains high across most sectors. We’re seeing encouraging resilience in the PSI, consistent with faster than average economic growth.”
For the third consecutive month, all five main sub-indices were in expansion. Employment(56.0) recorded its highest result since the survey began in 2007, as did supplier deliveries (59.0). In addition, stocks/inventories displayed its second highest result, only bettered by the November 2007 figure. New orders/business (58.5) continued to lead the charge in terms of the highest overall result for August, while activity/sales(57.6) experienced a similar slip in expansionary levels.
Activity continued to remain positive throughout the country. In the North Island, the Northern region (57.0) was largely similar to its July result, while the Central region (56.2) experienced a dip in expansion after breaking through the 60-point barrier in July. In the South Island, the Canterbury/Westland region (51.9) fell 5.6 points in August, while the Otago/Southlandregion (55.8) returned to more standard levels of growth.
The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for August saw the two options for measuring the PCI showing differing movements. The GDP-Weighted Index remained at 57.6 for August, while the Free-Weighted Index (57.2) rose 1.1 points from July, and its highest level since March 2014.
Click here to view the August PSI & PCI
Click here to view the PSI time series data
Click here to view the PCI time series data
For media comment: Phil O’Reilly 04 4966552 or Craig Ebert 04 4746799
