NZ services sector perks up in Oct-survey
Reuters - 2 hours 26 minutes ago
WELLINGTON, Nov 17 - Activity in New Zealand's services sector rose for the first time in four months in October, but the sector was still struggling in the face of recession and a deteriorating outlook, a survey showed on Monday.
The Bank of New Zealand-Business NZ's performance of services index rose 1.8 points to 48.7 last month.
The index has been below 50 point, the level indicating contraction, since April this year. It is down 9.7 points on the same month a year ago.
"Improving weather conditions have provided a boost for some firms, while there are some who are enjoying greater levels of activity as their competitors are forced to wind up their business," said Business NZ chief executive Phil O'Reilly.
A fall in two of the five sub-indices -- sales and employment -- dragged down the overall PSI, but there was a slight improvement in new orders and deliveries.
The Reserve Bank of New Zealand is expected to cut interest rates by as much as 100 basis points to 5.50 percent at its next monetary statement in December, as it looks to cushion the New Zealand economy from the global economic slowdown.
The survey, based on responses from more than 300 service sector companies, mirrors a long-established poll for manufacturing also conducted by Business NZ.
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