The BNZ – BusinessNZ Performance of Services Index (PSI) for August 2023 comes in at 47.1, back to levels last seen in January 2022
- prior 48.0
- third consecutive drop in activity levels
- long-term average is 53.5
BusinessNZ chief executive Kirk Hope:
August result showed little in the way of a road to recovery
- “The proportion of negative comments stood at 63.9% in August, compared to 67% in July and 55.6% in June. Overall, negative comments received were strongly dominated by uncertainty regarding the upcoming General Election, as well as continued adverse economic conditions”
BNZ Senior Economist Doug Steel:
- “the latest PCI readings suggest any bounce through the Q2 GDP figures will be short lived and are consistent with economic contraction returning. In this sense, the PMI and PSI results are more consistent with the RBNZ forecast of a return to recession than the Treasury’s latest forecasts of moderate growth ahead”