The Business New Zealand-Bank of New Zealand survey of services sector activity in October found a marginal improvement from the previous month, but the sector remains in recession and the outlook is bleak. The PSI for October stood at 48.7, up 1.8 points from September and staying within the 47-49 value range which has dominated results this year, BNZ and Business NZ said. The October result was 9.7 points down from the same month last year. Business NZ chief executive Phil O'Reilly said despite the slight improvement in the October result compared with September, the main index values since April have remained in negative territory and well off the pace of results during the same period in 2007. BNZ economists said there was more pain to come with the next leg of the downturn likely to be led by a sharp contraction in investment activity and a significant increase in the unemployment rate.* This article was first published in our daily subscription newsletter for the banking and finance industries. The email costs NZ$365 per annum and carries exclusive news and analysis for New Zealand banking and finance industry executives, regulators and investors. Sign up for a free trial here.
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