Services sector contracted to lowest level in 6 months - BNZ

Services sector contracted to lowest level in 6 months - BNZ


Photo: Facebook / Glenfield Mall
The BNZ-Business NZ Performance of Services Index (PSI) fell by 4 points in October to 46.7, its lowest level since May.
A reading above 50 indicated growth, while anything below signalled contraction.
BNZ senior economist Craig Ebert said the congestion in global supply routes is hurting the sector, with small firms feeling the pinch more than their larger counterparts.
"The component that's often not looked at very closely was the weakest, supply of deliveries, so the delivery system is getting a bit slower but also activity sales were down... and inventory was also quite weak."
The employment sub-index was unchanged, which pointed to jobs being shed in the sector for the ninth consecutive month.

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