It’s the economy stupid, Ctd

Another good result for the economy after last week’s strong data.

New Zealand’s services sector registered its highest level of activity since October 2012 in July, led by new orders and strength in the northern region.

The BNZ-Business New Zealand Performance of Services Index rose to 58.1 last month, up three points from June and from 52.2 in July last year. It is the highest reading for July compared to a year earlier since the survey began in 2007. A reading above 50 indicates expansion in activity.

The PSI follows the release last week of its sister survey, the performance of manufacturing index, which rose to a nine-year high in July, with production and new orders leading the charge.

“Combined they point to GDP growth quickening to quite a strong pace,” said Craig Ebert, economist at Bank of New Zealand.  

BNZ will be revising up its GDP growth view for the third and fourth quarters “quick smart”, he said.

The bank is currently predicting a 0.7 per cent expansion in the third quarter and 1 per cent expansion in the fourth quarter.

I note that Red Radio was also saying at lunchtime that some economists are now talking about 5% growth as a possibility.


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.

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