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NZ services PSI holds above 50, but hiring remains weak
BNZ-BusinessNZ said employment fell in July, with 64% of survey comments negative amid concerns about living costs, fuel prices, interest rates, and election uncertainty.
New Zealand services activity stayed in expansion in July, but the pace of improvement eased, according to the BNZ-BusinessNZ PSI. The headline index slipped to 50.6 from 50.9 in June, still clearing the 50 breakeven level for a second straight month.
The report highlighted a narrow recovery. Activity and Sales improved from 49.7 to 50.5, and Stocks and Inventories rose from 50.3 to 51.6, while New Orders and Business eased from 53.3 to 52.6.
Despite gains elsewhere, employment weakened. Employment fell to 48.5 from 48.8, and Supplier Deliveries dropped from 51.2 to 48.5, while BusinessNZ said firms remain cautious about hiring.
ActionForex.com said the mixed composition provides limited support for a stronger rebound, citing persistent employment contraction and weak sentiment, with 64% of comments negative. The piece also linked the data to ongoing market focus on the RBNZ's still-hawkish expected OCR path versus sharply lower near-term inflation expectations.