Forex Flash: NZ service sector humming along – BNZ

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FXstreet.com (Barcelona) - In New Zealand, the recently released Performance of Services Index ( PSI ) stood reasonably firm at 53.1 for July, a wafer or two down from 53.9 in June. According to Analyst Doug Steel at BNZ, "that's still pretty good and indicative of ongoing expansion in the biggest sector of the economy through mid-year."

This is in contrast to last week's Performance of Manufacturing Index (PMI) that showed that sector effectively flat lining through this period. These differences add to other economic information over the past few weeks that have brought more confusion than clarity as to how the economy is progressing. For every indicator pointing one way there seems to be another one pointing in the opposite direction.

It comes as no surprise then to still see a lot of chop in the PSI details. You do not have to scrape too far beneath the headline figure to get a more muddied view on the rate of progress in the service sector. For example, the PSI activity and employment components, each at just over 52, suggest only a modest rate of expansion. "Meanwhile, the new orders index up at 58.8 points suggests the sector is fair humming along." he adds.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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