Services sector keeps its head above water as jobs slump drags on
New Zealand's services sector is continuing to eke out modest growth even as the labour market slump drags on. The data points to a mixed picture for the wider economic recovery.
The latest survey shows services activity remaining in expansion territory, though the pace of growth sits below historical averages. Businesses remain cautious on labour costs.
The rise in unemployment continues to weigh on consumer spending. Economists say the central bank will factor this mixed picture into upcoming interest rate decisions.
Analysts note that the services sector's resilience offers the economy some support, but that labour market weakness could delay a broader recovery.
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