The services sector in New Zealand continued to contract in January, and at a faster pace, the latest survey from BusinessNZ revealed on Monday with a Performance of Service Index score of 47.9.
That’s down from the downwardly revised 49.1 score in December (originally 49.2) and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.
Individually, sales (46.4), employment (46.9), supplier deliveries (41.6) and stocks/inventories (49.9) all were in contraction, while new orders (53.7) expanded.
“Combining last week’s very strong PMI with today’s soft PSI points to some slowing in growth. But we also need to factor in strong public sector jobs growth and a booming construction sector,” BNZ Senior Economist Doug Steel said.