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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  • blokeintakapuna

    Blimey – how impertinently inconvenient these facts are for L&G – going against the narrative they’ve been trying to spin for month’s…
    Desperation heaped upon desperation with desperate people causes them to do desperate acts… so in the context of the failed “power at all costs” policy…
    What desperate measures will they dream up next?

    • Sir Cullen’s Sidekick

      People are queuing up before dole offices according to Matt McCarten…What say you bloke?

      • johnbronkhorst

        why did he lock the door?

    • OrphanIsland

      Can’t change …. Must portray stoic resolve at all costs …. Must Not Change Ever …. We Are The LEFT WING ….. Aye mummy 8-}

  • Sir Cullen’s Sidekick

    Sorry bros – What is the view of Ganesh Nasty Nana – the ultimate economist?

    • johnbronkhorst

      I’ve got one of those…Eco-mist things, it has as much knowledge of economics as mr nana!!

  • cows4me

    Looking at the job vacancies in Saturdays paper, heaps of jobs here. A cousin who has worked in the oil industry for 25 years says that there is more work then their firm can handle and it’s only going to get better in the next few months with the arrival of a couple of drilling rigs. Anyone that can’t find a job is either retarded or flat out lazy around here. So plenty of growing business here.