Indices Show Expansion in Central Region Economy

Media Release
17 December 2012

Indices Show Expansion in Central Region Economy

Central region businesses were in growth mode in November according to the recently released BNZ-Business New Zealand Performance of Services and Manufacturing Indices.

November results for both the Performance of Manufacturing Index (PMI) and the Performance of Services Index (PSI) show that central region businesses were generally expanding.

The services sector did particularly well as indicated by a reading of 55.0 in the PSI released today. This result follows the central region manufacturing number of 51.7 as released in last week’s PMI.

A reading above 50.0 indicates that the sector is generally expanding; below 50.0 that it is declining.

Business Central Chief Executive Raewyn Bleakley said the central region PSI is particularly pleasing having bounced back from consecutive monthly declines. While the figures are not seasonally adjusted they are one indication of a positive outlook.

“New orders and new activity were the main contributors to the expansion. And buoyant primary production has been a major sectoral driver of growth in the region.”

“Overall, however, progress is proving slow. We will need more positive data to be satisfied that the recovery can be sustained which is reflected in my discussions with businesses across the region”, she said.

Business Central is one of four members of the Business New Zealand family. The central region extends to Gisborne in the north and includes Nelson in the south.

ENDS

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