Green shoots may be emerging – but they’ve been elusive before now
Source: iStock
Many of us have been looking in vain for signs of “green shoots” that might give us a clue that this long and painful recession might be nearing its end.
With 125 basis points of Reserve Bank cuts to its official cash rate (OCR) since August, and another 50bp expected on Wednesday, some of us are getting impatient.
It’s possible the latest BNZ-BusinessNZ services and manufacturing indices are pointing to the fact that the long-awaited recovery is underway.’
The performance of services index for January released yesterday tipped over into growth just barely with a 50.4 point reading – anything above 50 indicates expansion – the first time in 10 consecutive months that it’s been above 50.
The performance of manufacturing index for January also managed to crawl into growth with a 51.4 point reading, the first above 50 after 22 long months in contraction.
But it doesn’t feel the time yet to take a victory parade.