Despite a softer result in October, activity in New Zealand’s services sector continued to show expansion, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
The PSI for October was 56.2. This was 2.8 points lower than September, and similar to levels of activity experienced in July (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 given the previous month was at near record highs, some reduction in the level of expansion was not a surprise.
“The key indicators of activity/sales (57.6) and new orders/business (57.1) remain in healthy territory, and bodes well for a strong year for the sector”.
“The proportion of positive comments in October (61.8%) was slightly lower than September (65.8%), but still up on August (59.2%). For those who stipulated positive influences, there were no clear patterns emerging, although many felt that conditions were ticking along as usual”.
BNZ Senior Economist Craig Ebert said that in relation to the sectors combined ” the PSI and PMI still give the impression of an economy growing at a comparatively solid pace at the outset of Q4, following a champing performance through Q3.”
