The service industry in New Zealand has persisted to shrink in April, quickening the pace of contraction, according to the latest data from BusinessNZ. The Performance of Services Index (PSI) showed a score of 47.1, a decrease from the revised 47.2 in March, which was initially reported as 42.5. This places the score further below the vital 50 point mark that differentiates growth from shrinkage.
Upon looking at individual factors, April saw a contraction across the board in sales (46.5), employment (47.1), new business (47.1), inventory levels (46.6), and supplier deliveries (47.6).
“The weak PSI combined with last week's PMI results in a composite reading suggesting GDP might continue to track below year-on-year levels into the mid of this year. This aligns with our expectations, however, the collective index could indicate a potential risk to our forecasts," expressed Doug Steel, Senior Economist at BNZ.
