Updated
Updated · Action Forex · Aug 17
New Zealand Services PSI Holds at 50.6 as Employment Contracts at 48.5
Updated
Updated · Action Forex · Aug 17

New Zealand Services PSI Holds at 50.6 as Employment Contracts at 48.5

2 articles · Updated · Action Forex · Aug 17

Summary

  • 50.6 July PSI kept New Zealand’s services sector in expansion for a second straight month, though momentum eased from 50.9 in June.
  • 50.5 Activity/Sales moved back into expansion for the first time in six months, while New Orders stayed relatively firm at 52.6, suggesting demand is stabilizing rather than rebounding strongly.
  • 48.5 Employment remained in contraction and Supplier Deliveries also fell to 48.5, pointing to a recovery still limited in breadth.
  • 64% of respondent comments were negative, with living costs, fuel prices, interest rates and election uncertainty keeping firms cautious on hiring.
  • For markets, the mixed report is unlikely on its own to shift the recent tension between the RBNZ’s still-hawkish OCR path and softer near-term inflation expectations.

Insights

Could the hidden employment contraction in New Zealand's services sector trigger an unexpected shift in interest rates?
Why are New Zealand businesses refusing to hire even as their sales finally start to bounce back?
How is the fast-food industry booming while the rest of New Zealand's hospitality sector faces mounting liquidations?