Otago-Southland strong Performance of Services Index
(PSI) in November carried into December, although some
levelling-off in the sector is evident, Otago-Southland
Employers Association chief executive John Scandrett says.
November's BNZ-BusinessNZ survey showed the region with a
72.4-point result, by far the highest in New Zealand that
month. December's results, released yesterday, showed a
result of 55.1.
The levelling-off was ''probably warranted'' since the local
PSI sentiment evident in November appeared to breach the
usual high-end range and Mr Scandrett also felt it exceeded
national levels by a ''significant margin''.
However, there was continuing robust sub-index feedback
across December orders and new business and also around
positive stock level maintenance sentiment.
Regionally, sub-sector strength had continued in retail and
wholesale activities, selected tourism markets and in the
Some tourism operators missed out on seeing anticipated
business activity and the pre-Christmas home
services/decorating sector produced sluggish performance
outcomes compared to the usual seasonal tracing patterns, he
Nationally, the PSI for December was 57.5, up 1.1 points from
November. The last quarter of 2013 - the strongest for
activity since 2007 - indicated the services sector was
''moving up a gear'' in terms of expansion, BusinessNZ chief
executive Phil O'Reilly said.
''While there are always seasonal factors at play during this
time of year, the fact remains that new orders and
activity/sales are consistently strong, which should feed
through into future results.
''The proportion of positive comments remains high, with many
outlining the new level of optimism and positivity in the
market,'' he said.
BNZ senior economist Craig Ebert said the PSI suggested a
pick-up in production was gaining momentum. The new-orders
index was by far the fastest component of all.