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The service sector's activity dropped to its lowest level in five and a half years, raising fears of a marked slowdown in economic activity
SNB economist senior Doug Steel
Photo: Provided
The performance index of Business New Zealand BNZ services fell to 52.8 in June from 57.1 the previous month
C & # 39; was the most low since December 2012, and below the long-term average of the index. 19659006] "May's strength followed by June's weakness could be the monthly noise rather than an indication of a sustained period of slower growth," said BNZ Senior Economist Doug Steel
. , could not be ignored because of the weaker reading of the manufacturing activity observed last week.
"The PSI (performance of services index) and performance of manufacturing index (PMI) results are not so easily discounted s results are not based on sentiment, outlook, or expectation. are probably more disturbing from the point of view of growth. "
M. Steel said that combining the two indices indicates economic growth slowing at an annual rate of 2% or less, which contrasts with forecasts He said that, in turn, would open an external chance of a reduction in interest rate by the Reserve Bank, and certainly delay the likely start of rising rate hikes, which according to most economists will occur in the second half of 2019.
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