The services sector in New Zealand continued to expand in April, and at a faster pace, the latest survey from BusinessNZ revealed on Monday with a Performance of Services Index score of 61.2.
That’s up sharply from 52.9 in March and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.
Among the individual components, sales (62.1), employment (60.8), new orders (68.0) and stocks (56.5) all expanded, while supplier deliveries (46.8) remained in contraction.
“The Achilles heel of the PSI remains supplier deliveries,” said BNZ Senior Economist Doug Steel. “Given supply issues obviously remain a significant issue for many, especially when viewed alongside very strong demand side indicators at present, it points to significant upwards pressure on prices.”