Services sector still contracting in December PSI survey

The Services Sector contracted again in December, a Business NZ/BNZ survey of the sector found. The Performance of Services Index (PSI) for December was 48.0, which was up marginally from the 47.3 recorded in November, but below the 50 threshold signalling contraction. The outlook for employment and sales both fell heavily, but the outlook for new orders improved marginally. BNZ said the numbers should be treated with some caution given the series is too young to build seasonal adjustment into the figures. Even if they show a marginal improvement, "the underlying story is still much weaker than the headline suggests," BNZ said.