Otago's services sector weakest in NZ in June

The performance of Otago's services sector during June was at its lowest ranking for the year, which at 50 is fence-sitting between contraction and expansion.

Otago shared a rising concern with the national data, over shortages of skilled people.

The Otago data was the weakest of the four regions across the country on 50 points, down from 56.7 the month before. Canterbury/Westland was on 52.3, central North Island topped the points at 57.6 and upper North Island was on 54.6.

Otago Southland Employers' Association chief executive Virginia Nicholls said Otago-Southland's 50.3 points for June were the lowest this year.

She said tourism as a whole continued to have a positive outlook, along with health and community services.

"The construction service industries experienced a positive month, but there are concerns around the lack of skilled labour,'' she said.

The June sub-index for Otago-Southland had activity/sales higher, but employment levels, orders and new business were down, she said.

The hospitality industry had experienced a quieter start due to the unexpected warmer weather, but Ms Nicholls expected that sector to pick up this month.

Nationally, the services index was 56.7, just slightly down on May's 56.9, but above the historical average of 56.4 for the first six months of the year.

BusinessNZ chief executive Kirk Hope said that nationally, those businesses who stated their main influences on activity were positive typically mentioned either "steady sales or business as usual''. "Those stating negative influences instead focused on either seasonal patterns or issues relating to shortages of skilled staff,'' he said.

simon.hartley@odt.co.nz

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