Activity in New Zealand’s services sector rose to its highest level since November 2007, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
The PSI for November was 59.8. This was 3.3 points higher than October, and also up from September’s strong result (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 with November’s result being close to the 60 point mark, it adds to what has been a very healthy level of expansion in the sector over the last six months.
“Above all, the key indicators of activity/sales (62.3) and new orders/business (64.2) have consistently remained in healthy territory, which has flowed through into the overall result”.
“The proportion of positive comments in November (71.0%) experienced a sizeable lift from both October (61.8%) and September (65.8%). For those who stipulated positive influences, some seasonal patterns were obviously at play, but general comments centred on a steady stream of activity and opportunities for growth”.
Regarding the November result BNZ Senior Economist Craig Ebert said “If the RBNZ needed any reassurance that the economy has a great lot going for it, then November’s Performance of Services Index (PSI) has given it in spades.”
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