The services sector in New Zealand continued to expand in August, and at a much faster pace, the latest survey from BusinessNZ revealed on Monday with a Performance of Services Index score of 58.6.
That's up from the upwardly revised 54.4 reading in July (originally 51.2) and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
Among the main indices, sales (67.1), new orders (66.5), stocks (59.6) and employment (50.8) all expanded, while supplier deliveries (49.6) were barely in contraction.
"Overall, combining August's strong PSI with last week's firmer PMI yields a composite index that suggests annual GDP growth up toward 5 percent in Q3 2022. We currently forecast 5 percent-plus for that period but that strength is mostly a function of the very weak base period. If the PCI is truly bouncing, the key question is for how long?" said BNZ Senior Economist Doug Steel.
