New Zealand’s services sector showed further expansion in May as key indices continued to scale the heights, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
The PSI for May was 58.0. This was 1.5 points higher than April, and the highest overall value since July 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 key indicators of activity/sales and new orders/business pushed further into the 60+ value range, indicating strong expansion.
“It is also important to note that the employment index for May (56.3) reached its highest value since the PSI survey began in 2007. Combining this with a boost in the proportion of positive comments from businesses (almost 70%), means the services sector experienced a bumper result in May”.
BNZ senior economist Doug Steel said that the service sector has been a standout performer for some time. May’s PSI results simply reinforce this narrative.