- New Zealand Services PMI falls in March
- US retail sales drop, but inflation expectations rise
- NZD/USD drops to 3-week Low
New Zealand Services PSI declines
New Zealand’s services sector saw expansion levels ease in March. BusinessNZ PSI fell to 54.4, down from the 55.8 recorded in February, but still above the 50-point line that separates contraction from growth. Business NZ says that the factors behind the decline are a weakening global economy, price hikes and an uncertain economic environment.
This follows last week’s Manufacturing PMI, which slipped to 48.1, after a downwardly revised 51.7 in February. This trend is similar to that of other major economies where the service sector has recovered from Covid but manufacturing has struggled due to supply chain problems and weak global economic conditions.
The first quarter CPI will be released Thursday. The headline CPI is predicted to drop to 6.7% down from 7.2%. Reserve Bank of New Zealand continues to fight against inflation and has raised the benchmark cash rate from 5.25% to 5.25 percent. Orr must see a drop of at least 10% in the next inflation report before he can defend his high rate…