New Zealand Services PMI Improves To 49.1 In February – BusinessNZ
The services sector in New Zealand continued to contract in February, albeit at a slower pace, the latest survey from BusinessNZ showed on Monday with a Performance of Services Index score of 49.1.
That’s up from 48.0 in January, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Among the individual components, sales (50.8), employment (50.9) and new orders (50.3) were in expansion territory, while inventories (45.9) and supplier deliveries (40.8) continued to contract.
“When simply averaging across all responses to the PSI and PMI surveys gives a composite reading of 51.6 for February,” BNZ Senior Economist Craig Ebert said. “But re-weighting for the fact services comprise around 70 percent of the economy and the composite index yields 49.7. With this, we remain decidedly cautious on GDP growth for Q1.”