Latest / Best of Business / Catherine Beard: BusinessNZ Advocacy Director on the services sector continuing to contract in April

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Catherine Beard: BusinessNZ Advocacy Director on the services sector continuing to contract in April · Best of Business

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  Speaker 2: Interesting read from our services sector, I mean, can you
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  Speaker 2: believe those stories? I mean, of course you can believe
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  Speaker 2: those stories are true. Interesting read from our services sector.
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  Speaker 2: It's actually up two point seven points to forty eight
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  Speaker 2: point nine. Trouble the forty eight point nine. Of course,
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  Speaker 2: it's in contraction because you need fifty to expand. New orders, though,
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  Speaker 2: are expanding fifty one point two. Jobs are an issue though.
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  Speaker 2: Catherine Bed's, director of Advocacy for a Business New Zealand,
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  Speaker 2: is back with It's Catherine Morning to you.
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  Speaker 3: Good morning.
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  Speaker 2: The glass half full. Pace of contraction is slowing. Is
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  Speaker 2: there hope in that?
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  Speaker 3: Yes, well, look there's always hope and we'll take any
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  Speaker 3: any positives out of it. But yes, you're right, it
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  Speaker 3: is dull in contraction and with services it's a very
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  Speaker 3: big part of the New Zealand economy. So the other
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  Speaker 3: good bit of news in that, though, was that the
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  Speaker 3: new orders were just an expansion at fifty one, and
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  Speaker 3: sometimes that can mean that next data is going to
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  Speaker 3: be better.
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  Speaker 2: In your orders of the future, they are, they are.
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  Speaker 3: So I always look at the new orders figure, but
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  Speaker 3: of course you know this is all this is all
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  Speaker 3: really the fuel situation coming out of the trouble in
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  Speaker 3: the Middle East with Iran, So it's really impacting both
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  Speaker 3: manufacturing and services, which is a bit of a shame
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  Speaker 3: really because we started the year in quite positive territory.
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  Speaker 2: But when you say manufacturing, the manufacturing numbers which came out,
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  Speaker 2: yes I get it, but the job side of the
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  Speaker 2: manufacturing jobs are still I mean, I don't know what
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  Speaker 2: you want to bullish, robust whatever. They're still firing. Why
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  Speaker 2: they're hiring and manufacturing, but not in services. What's going
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  Speaker 2: on there.
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  Speaker 3: I think the manufacturing reflects that it was getting more
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  Speaker 3: into expansion faster. So the data from the manufacturing side
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  Speaker 3: was looking stronger towards the end of last year and
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  Speaker 3: at the start of this year, so I think that's
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  Speaker 3: probably reflecting the hiring going on there. The other thing,
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  Speaker 3: of course, is you bigger firm more robust than your
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  Speaker 3: smaller firms, so you might have kind of the bigger
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  Speaker 3: firms actually in a better situation in hiring more than
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  Speaker 3: the smithe.
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