1 00:00:00,120 --> 00:00:02,840 Speaker 1: Will the services sector result the final piece of the 2 00:00:02,840 --> 00:00:06,360 Speaker 1: recovery story later Services Index positive territory fifty one point 3 00:00:06,360 --> 00:00:08,960 Speaker 1: five hasn't been there for close to two years, up 4 00:00:09,000 --> 00:00:11,720 Speaker 1: four point three from November. Catherine Rich's the Business New 5 00:00:11,800 --> 00:00:14,200 Speaker 1: Zealand Chief executive and as well as Catherine good Morning, 6 00:00:14,960 --> 00:00:19,439 Speaker 1: Good morning, so manufacturing GDP broad confidence. Is this the 7 00:00:19,520 --> 00:00:21,159 Speaker 1: last piece in the puzzle that we set to go? 8 00:00:22,800 --> 00:00:25,400 Speaker 2: I think so. I mean, it's taken nearly two years 9 00:00:25,400 --> 00:00:29,840 Speaker 2: for the services sector to kick in to gear. It's 10 00:00:29,840 --> 00:00:33,480 Speaker 2: still fragile, but it's worthwhile acknowledging because as you said 11 00:00:33,520 --> 00:00:36,960 Speaker 2: in your intro, it's been a long time for there 12 00:00:37,120 --> 00:00:39,960 Speaker 2: is be expansion in the services sector. It's a really 13 00:00:40,000 --> 00:00:43,159 Speaker 2: important part of our economy. Nearly seventy percent of New 14 00:00:43,280 --> 00:00:47,199 Speaker 2: Zealand business the economy is made up of services. So 15 00:00:47,240 --> 00:00:48,720 Speaker 2: it's a positive start to the year. 16 00:00:49,080 --> 00:00:50,920 Speaker 1: Is this sustainable? Are we on a path? 17 00:00:52,360 --> 00:00:55,840 Speaker 2: Well, it's not a trend yet and we're just over 18 00:00:55,960 --> 00:01:00,520 Speaker 2: the fifty mark at fifty one point five. But what 19 00:01:00,720 --> 00:01:04,120 Speaker 2: was good about the results was that the positive change 20 00:01:04,200 --> 00:01:09,520 Speaker 2: came from the indicators that mattered new orders in particular, 21 00:01:10,080 --> 00:01:13,360 Speaker 2: and look, it's a really important part of the economy. 22 00:01:13,360 --> 00:01:18,680 Speaker 2: It's transport, its health, it's retail, its hospitality, So finally 23 00:01:18,800 --> 00:01:23,520 Speaker 2: it would seem that the positive influences of everything else 24 00:01:23,560 --> 00:01:26,959 Speaker 2: is starting to filter through. So certainly worthwhile. 25 00:01:26,520 --> 00:01:30,759 Speaker 1: Acknowledging not all subindices were above or into positive territory. 26 00:01:30,800 --> 00:01:31,679 Speaker 1: Will they be? 27 00:01:33,800 --> 00:01:39,240 Speaker 2: They're not, and that's why the expansion is not at 28 00:01:39,280 --> 00:01:42,959 Speaker 2: the It wouldn't describe it as a boom, but at 29 00:01:43,040 --> 00:01:48,000 Speaker 2: least after nearly two years, we're moving forward. So it'd 30 00:01:48,000 --> 00:01:50,640 Speaker 2: be important to look at the results for next year, 31 00:01:51,080 --> 00:01:54,920 Speaker 2: Sorry for the next month, but certainly really positive. 32 00:01:55,640 --> 00:01:59,440 Speaker 1: What's your view this noise vy reality thing? So the 33 00:01:59,440 --> 00:02:01,520 Speaker 1: big surprise for me over the Christmas period was that 34 00:02:01,560 --> 00:02:03,800 Speaker 1: GDP number out of August September, October, in other words 35 00:02:03,880 --> 00:02:06,559 Speaker 1: Q three. While back then we were bitching and moaning 36 00:02:06,560 --> 00:02:09,360 Speaker 1: about everything being miserable, we were in fact growing and 37 00:02:09,440 --> 00:02:14,240 Speaker 1: growing quite well. Are we mentally bogged down when in 38 00:02:14,280 --> 00:02:15,520 Speaker 1: reality it's not that bad? 39 00:02:16,840 --> 00:02:21,519 Speaker 2: Well. Part of discussing the economy is just having some perspective. 40 00:02:21,680 --> 00:02:24,120 Speaker 2: Some of the changes the governments made have been long 41 00:02:24,200 --> 00:02:28,640 Speaker 2: term reforms, so you don't see instant change, things like 42 00:02:28,760 --> 00:02:33,799 Speaker 2: changes to RMA, employment, law, education, etc. And the expectation 43 00:02:33,919 --> 00:02:36,239 Speaker 2: that some people have that there's going to be an 44 00:02:36,240 --> 00:02:41,240 Speaker 2: instant's success. It is not realistic. We're talking about trying 45 00:02:41,280 --> 00:02:43,600 Speaker 2: to turn around an economy. We haven't opened a packet 46 00:02:43,639 --> 00:02:48,440 Speaker 2: of noodles and expect instant results. So I think over 47 00:02:48,480 --> 00:02:50,919 Speaker 2: a period of time, and particularly in twenty twenty six, 48 00:02:51,520 --> 00:02:55,480 Speaker 2: I think you'll see business being far more upbeat because 49 00:02:55,680 --> 00:02:58,519 Speaker 2: we need to remember also that many business people don't 50 00:02:58,560 --> 00:03:00,919 Speaker 2: sit around waiting for the government to decide what it's 51 00:03:00,960 --> 00:03:04,000 Speaker 2: going to do. They're looking at opportunities, they're seeing things 52 00:03:04,000 --> 00:03:06,040 Speaker 2: to do in the local economy, and they're just putting 53 00:03:06,480 --> 00:03:08,600 Speaker 2: one foot in front of the other and getting on 54 00:03:08,680 --> 00:03:08,920 Speaker 2: with it. 55 00:03:09,160 --> 00:03:10,800 Speaker 1: Well, this is a good news story for now, Casine 56 00:03:10,800 --> 00:03:13,000 Speaker 1: appreciate it very much. Katherine Rich Business New Zealand Chief 57 00:03:13,000 --> 00:03:16,160 Speaker 1: Executive number of fifty one point five. For more from 58 00:03:16,160 --> 00:03:19,280 Speaker 1: the Mic Asking Breakfast, listen live to news talks that'd 59 00:03:19,280 --> 00:03:23,200 Speaker 1: be from six am weekdays, or follow the podcast on iHeartRadio.