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Source: ONE News
The service sector had its strongest performance for a January month in two years, according to the BNZ-Business NZ Performance of Services Index (PSI).
The PSI for January was 53.1, a marked increase on the 42.7 recorded in January 2008, though a small step back from 54.4 in December.
A reading above 50 suggests the sector is expanding, and below that contracting.
Business NZ chief executive Phil O'Reilly says he was encouraged by the result, being the second consecutive month a record monthly high was reached.
However, BNZ senior economist Craig Ebert says there was a mismatch between January's PSI and soaring consumer confidence.
"Discounting obviously helped boost sales volumes and cull inventories, but there's still some catching up to do to reach the optimistic expectation levels shown in market polls," he says.
During the month, all five categories that make up the index - new orders, activity/sales, supplier deliveries, stocks/inventories and employment - were all in expansion, though every category slipped back or remained the same compared with December's results, except for employment.
Employment in the services sector reached its highest level since November 2007 and was the fourth consecutive month of expansion.
Activity across the four main regions was in expansion, with the Otago/Southland region out in front.
Of the industry's sub-sectors, the transport and storage sector
led expansionary activity while the accommodation, cafe and
restaurants sector fell back from its Christmas trading high in
December.
