NZ Performance of Services Index for April

A very large drop for the month, shedding 6 points to 52.8

  • prior 58.58, revised from 59.0

Markets do not pay much immediate attention to services PMIs, but this will raie a few eyebrows

  • The lowest for this index in 4 years
  • Employment sub index up, other 4 sub indices lower

BusinessNZ chief executive Kirk Hope:

  • drop in expansion
  • "school holidays, public holidays and severe weather conditions combined to create a number of impediments"
  • new orders (55.6) still in healthy territory

BNZ Senior Economist Doug Stee

  • "if there is a slowing in underlying economic momentum underway, the drop in the PSI surely overstates it. That said, it will be good to see a decent bounce back in May to confirm that is indeed the case"