WELLINGTON, July 15 (Reuters) - Expansion in New Zealand’s services sector eased in June from a seven-month high the previous month, driven by a dip in deliveries and employment but still pointing to solid economic activity.
The Bank of New Zealand-Business NZ’s seasonally adjusted performance of services index (PSI) fell to 55 in June from 56 in May, which had been the highest reading since October 2012.
A reading above 50 indicates expansion in activity.
All of the PSI’s five sub-indices expanded, with new orders, stocks, and sales showing modest gains but declines seen in deliveries and employment, which held marginally above 50.
“Another reading in the mid-50s, well above the 50 mark that distinguishes progress from contraction, points to a decent rate of expansion for the biggest sector of the economy,” Bank of New Zealand economist Doug Steel said on Monday.
Last week, a companion manufacturing survey showed activity in June easing from a near nine-year high due to a decrease in production growth and new orders off-setting increasing deliveries and finished stock.
The GDP-weighted composite index, which combines the manufacturing and services surveys, dropped 1.4 points to 55, easing back from May’s seven-month high. (Writing by Boris Jancic; Editing by Paul Tait)