Services sector expands as crowds gather due to end of Covid1-9 collection restrictions

The service sector continues to expand due to improving weather and the upcoming summer vacation season.

The BNZ Business New Zealand Service Performance (PSI) Index for October rose 1.5 points from September to 57.4, well above its long-term average of 53.6.

A figure above 50.0 indicates an overall expansion of the services sector.

Kirk Hope, CEO of Business NZ, said the survey was above 55 points for the third straight month, with two major trends: new activity/sales (61.0) and new orders/business (59.9). He said the subindex is in a very healthy position.

Additionally, 57 points of employment experienced the highest level of activity in 18 months.

The percentage of positive comments in October (55.4%) was higher than in September (47.9%).

BNZ senior economist Craig Ebert said the latest data showed spending shifting from durable goods to services.

“The major service industries are now, in the long chalk, cultural, recreational and personal,” Ebert said.

“This was as big as it was in September at 80.0, and in October it was even gigantic at 90.6 (points). rice field.”