BusinessNZ Performance of Services Index (PSI) stays in expansion - a decent performance compared with some of the data indicators coming out of New Zealand. The Reserve Bank of New Zealand has been hiking rates, as you know, and looks intent to do more even as the economy enters recession. Inflation pressure in NZ is still on the up.

December comes in at 52.1

  • prior revised up to 53.8

From the report:

  • BusinessNZ chief executive Kirk Hope said that while the sector remained in expansion for the last month of 2022, the December result saw the key sub-index of Activity/Sales (52.1) down to its lowest level since February 2022
  • BNZ Senior Economist Craig Ebert said that “December marked a significant slowdown in a short space of time for the PSI, although the maintained loftiness in New Orders/Business suggested there was still a lot of demand-side pressure at play”.

NZD/USD not much changed. The PSI tends not to be much of a market mover upon release though.

New Zealand services pmi 24 January 2023