The BusinessNZ Performance of Services Index in New Zealand decreased to 51.9 in December 2019 from a downwardly revised 52.9 in the previous month. The latest reading pointed to the slowest expansion in services activity since September 2012 and was also well below its long-term average of 54.4. Growth slowed considerably for stocks (51.5 from 59 in November) and eased for activity (52.6 from 53.9), but gained steam for new orders (54.5 from 53.7) and employment (52.3 from 51.6). In addition, supplier deliveries fell into contraction zone (48.6 from 51.6). "December’s PSI unequivocally counsels caution for the time being. Indeed, combining the weak PSI with last week’s retreat in the PMI suggests the economy may be currently travelling at a sub-2% rate," warned BNZ Senior Economist Craig Ebert. Services Pmi in New Zealand averaged 54.41 points from 2007 until 2019, reaching an all time high of 60.80 points in April of 2007 and a record low of 44.90 points in November of 2008. source: Business New Zealand
Services Pmi in New Zealand is expected to be 53.20 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services Pmi in New Zealand to stand at 53.00 in 12 months time. In the long-term, the New Zealand Services Pmi is projected to trend around 57.00 points in 2020, according to our econometric models.