Earthquakes fail to slow New Zealand services sector growth

Advert Travel Gazette

Growth in New Zealand’s services sector accelerated last month, according to the latest performance of services index (PSI) out Monday.

The BNZ-Business New Zealand PSI for November was 57.9, on a scale where above 50 indicates expansion and below 50 contraction.

It was 1.3 points up from October, and the highest result since August.

Business New Zealand chief executive Kirk Hope said the result came from challenges presented by the 7.8-magnitude earthquake and aftershocks that rocked the upper South Island and lower North Island last month.

“Comments from respondents show that for some, the recent earthquakes have presented obvious challenges. However, seasonal factors such as the lead in to Christmas and improving weather conditions have helped make the November result the second equal highest in 2016,” Hope said in a statement.

BNZ senior economist Doug Steel said in the statement that “the November PSI was a picture of strength, and contributes to the broad based growth the service sector has shown over 2016.”

The GDP-weighted performance of composite index, which combines the PSI and the performance of manufacturing index, rose by 0.7 points to 57.2 in November.

Travel Gazette Ads