Growth across New Zealand’s services sector slowed in July with the BNZ-BusinessNZ Performance of Services Index slipping 1.6 points to 56.5.
As with all PMI gauges, a reading above 50 indicates that activity in the sector is expanding.
All five main survey components registered a reading above 50 with the activity/sales and new orders/business gauges topping the list at 60.4 apiece. Elsewhere, employment came in at 53.8, supplier deliveries 54.0 and inventories at 51.0.
From a geographic perspective, activity expanded fastest in the nation’s north island.
To Phil O’Reilly, BusinessNZ chief executive, the robust PSI reading “displayed the fundamentals of continuing growth”.
“The proportion of positive comments in July (64.1%) was up on June, with respondents outlining new business/orders and product development as key ingredients for influences on activity. To a lesser extent, the recent fall in the value of the New Zealand dollar has also assisted expansion,” said O’Reilly.
Coming on the back of July’s 53.5 PMI reading released last week, the continued strong expansion in New Zealand’s services sector is a welcome development given recent weakening in the nation’s agriculture and construction sectors.