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\nPhoto: 123RF\n<\/p>\n
Services sector PSI slips to 46.9, worst reading since May
\nSales, employment, deliveries fall, new orders move sideways
\nProportion of negative comments falls for fourth consecutive month
\nRetail only bright spot<\/p>\n
Services sector activity slowed further in November to its worst level in six months, putting a dampener on prospects for a solid new year recovery.<\/p>\n
BNZ – BusinessNZ Performance of Services Index (PSI) for November fell by 1.5 points to 46.9.<\/p>\n
A reading below 50 indicates the sector, which accounts for nearly three-quarters of the economy, has been going backwards. It has not been in expansion since February 2024.<\/p>\n
BusinessNZ chief executive Katherine Rich said the latest reading dashed immediate hopes for an improvement to wards expansion.<\/p>\n
“Negative comments received show the services sector overwhelmingly citing the weak economic environment, including low consumer confidence, high living costs, inflation, interest rates, and reduced spending, as the main factors affecting recent activity.”<\/p>\n
All \ufb01ve sub-indicators lost ground with the biggest contraction in activity\/sales, followed by deliveries, and employment, while new orders\/business hovered just below the no change mark.<\/p>\n
BNZ senior economist Doug Steel said the PSI reading was a wake-up call.<\/p>\n