Growth in New Zealand services sector dips slightly in May

[WELLINGTON] Growth in New Zealand's services sector dipped slightly in May but remains at a solid level of expansion, according to an index released on Monday.

The Bank of New Zealand-Business NZ's seasonally adjusted performance of services index (PSI) fell to 56.9 in May, 0.9 points lower than in April.

A reading above 50 indicates expansion in activity. "New Zealand's current economic expansion is being underpinned by a rising population and booming tourism," said BNZ Senior Economist Doug Steel.

Last week, a companion manufacturing survey (PMI) showed that manufacturing activity rose in May. The Bank of New Zealand-Business NZ's seasonally adjusted Performance of Manufacturing Index (PMI) rose to a reading of 57.1 from 56.6 in the previous month.

REUTERS