New Zealand’s BusinessNZ Service Performance Index rose to 51.2 from 49.2 in November, passing the contraction-to-expansion threshold. However, it is important to note that this number remains below the long-term average of 53.5, suggesting that the recovery is still in its early stages.
Looking more closely, activity/sales rose from 47.5 to 48.7. Employment rose from 49.5 to 51.0. The number of new orders/businesses rose from 52.1 to 52.3. Stocks/inventories rose from 51.5 to 55.0. Supplier delivery rate increased from 50.1 to 52.9.
BusinessNZ CEO Kirk Hope said the sector had been oscillating between contraction and expansion in recent months, with volatility and uncertainty still prevalent in the business environment. It highlights what you are doing.
The percentage of negative comments from companies decreased from 58.2% in October to 54.0%. Although this decline is small, it is a positive sign that business confidence is slightly improving. Mr Hope added: “We continue to see negative comments on key areas such as the economy, inflation and cost of living.”