The services sector in New Zealand continued its contraction in May, and at an accelerated rate, according to the latest survey from BusinessNZ. The Performance of Services Index (PSI) dropped to 43.0, down from 46.6 in the previous month, moving further below the 50-point threshold that separates expansion from contraction.
Breaking down the components, sales posted a score of 40.9, employment 46.0, new orders 42.6, stocks 42.4, and supplier deliveries 46.1, all indicating significant contraction.
"The pace of the decline is as troubling as its magnitude over the past three months. There is weak, and then there is very weak. Overall, this points to a services sector rapidly reversing," remarked Doug Steel, Senior Economist at BNZ.
