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Published on : Wednesday, November 27, 2013
The New Zealand PSI reading was 58.2, the highest level of activity since 2007. Northern was on 60.8, central on 52.6 and Canterbury-Westland on 54.9. Otago-Southland tourism operators are starting to feel the pinch, leading to a fall in the regional reading on the BNZ-BusinessNZ performance of services index (PSI).
Otago-Southland Employers Association chief executive John Scandrett,who contributes to the PSI, said, “The September reading was a”stand-out” and was based largely on significant movement seen across construction, property services and utilities growth. However, inOctober we have been brought back to earth with a weak regional outcome.
This is clearly based on headwinds widely experienced by operators in the tourism sector.”
BNZ senior economist Craig Ebert said the economy was ”on fire” in 2007. But, unlike in 2007, we don’t see any seeds of natural demise.
Back then, it was only a matter of time before the economy came back down to earth, having spent and borrowed its way to all manner of imbalances and overstretch. A domestic recession was eventually made worse by a collapsing global economy. Now, there was only reason to think the strong growth portrayed in the latest PSI would keep going
against the backdrop of a positive, albeit mixed, global economic outlook.”