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New Zealand’s services sector experienced a pick-up in expansion during October, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
The PSI for October was 56.3. This was 2.1 points up from September, and similar to results mid-way through 2016 (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 after a drop in expansion during September, the pick-up was welcome, with all sub-indices showing stronger results.
“It was welcoming to see the key indicators of activity/sales (58.4) and new orders/business (56.3) showing stronger expansion, with the former at its second highest level for the last five months. Also, employment (54.7) bounced back to its highest level of expansion since May.”
Regarding the latest PSI results, BNZ Senior Economist Doug Steel said “the PSI indicates above trend economic growth is continuing. Strong results right across the distribution sector is more evidence of buoyant domestic spending and a booming tourism industry”.
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