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New Zealand services PMI rises above 50 for first time since January
BusinessNZ said new orders strengthened to 53.0, but employment and activity remain below the expansion threshold as the recovery looks tentative.
New Zealand’s services sector returned to expansion in June, with the BusinessNZ Performance of Services Index rising to 50.6 from 48.0, its first reading above the 50-point threshold since January, Action Forex reported.
The pickup followed a rebound in manufacturing, and new orders provided the biggest boost, climbing to 53.0 from 48.2. Supplier deliveries also moved back into expansion at 51.2.
Still, several underlying components pointed to a cautious recovery. Activity and sales improved to 49.3 from 45.1, employment edged up only to 48.8 from 48.7, and inventories rose to 49.9 from 47.8, with all three just below the expansion line.
BusinessNZ Chief Executive Katherine Rich said sectors reliant on discretionary spending, including hospitality and personal services, continued to struggle as households focus on essentials amid ongoing cost-of-living pressure. Action Forex added that the RBNZ is unlikely to change its cautious, data-dependent stance based on the report, despite firmer new-order demand.