Otago-Southland has broken the shackles of five
consecutive months of contraction to show growth in October,
the latest BNZ-BusinessNZ Performance of Services Index (PSI)
It was great to see the regional services sector "turn the
corner" and swing positively into expansionary territory and
at 55.6 value points, it was a robust reading,
Otago-Southland Employers Association chief executive John
Reviewing the subindices, activity levels, sales, stocks and
deliveries have performed strongly but new business prospects
have been assessed at a neutral fence-sitting 50-point
reading, he said.
"While selected tourism operators have yet to fully see
desired activities materialise, others in the industry have.
"Property services and construction/decorating survey
feedback has been positive and this is pleasing for sure
since these subsectors have until now been languishing
without any real direction," he said.
Nationally, the PSI for October was 57.4, up 7.5 points from
September and the highest result since November last year.
A PSI reading above 50 indicated the service sector was
generally expanding, below 50 that it was declining.
Compared with previous October results, the 2012 value was
the second highest recorded since 2007.
In the context of some "horrible" economic indicators for the
third quarter, the big bounce in the October PSI was very
welcome, BNZ economist Doug Steel said.
"While one needs more than one month's data to be sure of
genuine bounce in activity, it is a first step to suggesting
a reasonable rebound from a soft patch earlier in the year,"
The seasonally adjusted BNZ-BusinessNZ Performance of
Composite Index (PCI, which combines the PMI and PSI) for
October showed the two options for measuring the PCI back in
Three of the four regions were in expansion during October.
In the North Island, the Northern region (60.7) continued its
upwards momentum, with its highest value since November 2007.
In contrast, the Central region (48.8) showed almost no
change from the previous month. In the South Island, the
Canterbury-Westland region (56) displayed its highest result