New Zealand’s services sector ended the year in solid expansion territory, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
The PSI for December was 56.0, which was 0.5 points lower than November (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 2017 ended up with expansion averaging out at 56.9, slightly up on the 56.6 for 2016. In addition, a key sub-index of new orders showed strong expansion with an average over 60 points for 2017.
“While the proportion of positive comments for December (60.0%) was down from November (68.7%), there was a heavy seasonal factor at play, with Christmas and the holiday period being a key influence”.
BNZ Senior Economist Craig Ebert said that “this above-average outcome was doubly significant, considering the Performance of Manufacturing Index (PMI) decelerated sharply in December. Had the PSI done so too, we would have been much more concerned that the economy might be choking back a bit, following the election”.