![Services sector faces record decline amid bleak economic conditions 1 Services sector news](https://dailytelegraph.co.nz/wp-content/uploads/2024/07/services-sector-faces-record-1024x678.jpg)
New Zealand’s services sector has experienced a significant downturn, with the BNZ-Business New Zealand Performance of Services Index (PSI) plummeting to a record low of 40.2 in June, indicating a severe contraction.
This marks the second consecutive month of historically low activity levels outside of Covid lockdown periods.
BNZ senior economist Doug Steel highlighted that the PSI has been substantially below average for over a year, with the decline appearing to accelerate. Key factors contributing to the weakening include poor retail sales and high interest rates, which have reduced consumer spending power. Business New Zealand chief executive Kirk Hope told state media that the high interest rates are slowing down the economy, particularly affecting sectors reliant on discretionary spending such as hospitality and tourism.
The future outlook for the services sector remains uncertain, largely dependent on the trajectory of interest rates.
Hope noted that a reduction in interest rates could provide some relief, but until then, the sector is likely to remain in a challenging state.
The proportion of negative comments within the June PSI rose to 67%, reflecting widespread difficulties faced by businesses.
Additionally, the combined PSI & PMI index, which measures both services and manufacturing, also fell to its lowest level outside of Covid lockdowns. The ongoing economic challenges underscore the need for strategic interventions to stabilise and revitalise the sector.
Image credit: Lukas
Batten down the hatchers this is nothing as to what’s to come, NZ is in big trouble thanks to Jacinda and her cronies.
Jacinda and her cronies have caused such damage to my beloved homeland. I still cannot believe how they can sleep at night.
Unfortunately things are going to get a lot grimmer
Thanks to Ardern and ‘her’ henchmen
It is a time for hate
Humans seem to always mess things up even in 2024.
Hate gets you nowhere ,time to look after one another.
◄ Ecclesiastes 3:8 ► A time to love, and a time to hate; a time of war, and a time of peace.
A good healthy process