Katherine Rich: BusinessNZ CEO on the BNZ Business New Zealand Performance of Services Index showing growth in June

There’s relief after confirmation the economy, at this stage, is headed in the right direction.  

The latest BNZ-BusinessNZ Performance of Services Index shows the sector —which accounts for most economic activity— grew in June. 

Good results in transport and storage offset a contraction in hospitality. 

BusinessNZ Chief Executive Katherine Rich told Mike Hosking this is an important result.   

She says businesses are seeing customers starting to part with some of their money, although there is still some fragility when it comes to discretionary retail spend. 

Rich says that when combined with the good Manufacturing Index results, this adds up to a good outlook for the economy. 

But she notes things can change dramatically, saying we can't influence what happens in the Strait of Hormuz.  

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Episode Transcript

Speaker 1 (00:00):
So yesterday it was manufacturing. Today we've got the services
sector back into expansion mode. We're up from forty eight
and may to a bid over fifty. Last month, new
orders the strongest category at fifty three. Catherine Rich is
Business New Zealand Boss anders back, Well, it's Catherine, very
good morning to you.

Speaker 2 (00:13):
Good morning.

Speaker 1 (00:14):
Touch of relief here.

Speaker 2 (00:17):
It is good news. It's it's a flicker into life.
But it really shows the economies on the past to
recovery and we're on the right We're on the right
track in terms of the direction.

Speaker 1 (00:26):
Do you place a lot of weight on the new
water side of the equation that came into manufacturing yesterday.
Strongest subcategory new orders. New orders is the future, isn't it?

Speaker 2 (00:35):
Yes? It is. And what we like about the two surveys,
the PMI and the PSI, is that that one of
the earliest indicators of how the economy is going. So
new orders is a really good indicator. Businesses are saying that,
you know, customers are starting to part with some of
their money. Still some fragility though when it comes to
some of the discretionary spends for consumers and retail hospitality.

(01:00):
Caspes Et cetera. But the results really positive and so
I think it's just another part of shows we're on
the path of recovery.

Speaker 1 (01:09):
Manufacturing looks really solid. Service is not quite as much.
Is there more in services? Where this came from? Do
you think what's your vibe?

Speaker 2 (01:17):
Well, the services result is important because of course it's
seventy percent of our economy, but the manufacturing figure, which
was the highest in five years, showed that for manufacturers,
it was one of the strongest results they've had, so
that was positive. Taken together, it adds up to a
pretty positive outlook for the economy. But of course things

(01:41):
change dramatically. A lot of what New Zealand's facing we
can't influence straight to holl moves, et cetera. But with
what we've got in the last month, very very encouraging.

Speaker 1 (01:52):
We'll take it. Nice to get your inside Catherine Rich
who's the Business New Seeland CEO. For more from the
MI Casking Breakfast, listen live to News to Box at
b from six am weekdays, or follow the podcast on iHeartRadio.