NZD: Momentum in the PSI has slowed - BNZ

Craig Ebert, Senior Economist at BNZ, suggests that the smoothing over the last few months it becomes clear that momentum in the NZ’s Performance of Services Index (PSI) has slowed, since a high point late last year. Yet it’s far from being slow.

Key Quotes

“Even taking the March result alone, of 54.8 – strictly a 16-month low – it was still running above its historical average, of 53.9. The weakest spot was in inventories (52.3). This doesn’t seem preparation for weak demand given the new orders component of the PSI proved a solid 57.0 in March. Then there was the PSI’s employment index, which largely repeated its February positivity, with a result of 53.0. This is particularly encouraging considering the jobs index of the PMI has turned slightly negative over recent months.”