New Zealand’s services sector experienced a dip in expansion levels during July, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
The PSI for July was 54.2. This was 2.2 points down from June, and the lowest value since November 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 Kirk Hope said that despite the dip in expansion levels for July, the primary components involving activity/sales (57.3) and new orders/business (57.4) remained very healthy.
“Looking at comments, the proportion of positive comments actually increased from 59.3% in June to 65.6% in July. Also, negative comments were strongly based around seasonal factors, with both the weather and school holidays mentioned numerous times.
Regarding the latest PSI and PMI results, BNZ Senior Economist Doug Steel said “With July’s PSI around about average, and the PMI holding above its norm, combined they suggest the economy is expanding at a rate around, or slightly above, trend. In numbers, this infers annual GDP growth circa 3%”.