Keep calm and carry on – PSI

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19 Dec 2016

57.9

November

+1.3

Monthly Change

expanding

faster rate

View Kirk Hope's profile

Kirk Hope

Chief Executive, BusinessNZ

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New Zealand's services sector experienced a further pick-up in expansion during November, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for November was 57.9. This was 1.3 points up from October, and the highest result since August (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).

BusinessNZ chief executive Kirk Hope said that despite challenges for a number of businesses in recent weeks, the healthy level of overall activity for November was a welcome result.

BusinessNZ chief executive Kirk Hope said that despite challenges for a number of businesses in recent weeks, the healthy level of overall activity for November was a welcome result.

"Comments from respondents show that for some, the recent earthquakes have presented obvious challenges. However, seasonal factors such as the lead in to Xmas and improving weather conditions have helped make the November result the second equal highest in 2016."

BNZ Senior Economist Doug Steel said that "the November PSI was a picture of strength, and contributes to the broad based growth the service sector has shown over 2016".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

Tis (More Than) The Season

November's Performance of Services Index (PSI) is a picture of strength. After looking a little slower a couple of months ago, the PSI re-stretched its legs up to 57.9 in November and well above its long term average of 54.1.
Read more  

Broad Based Growth

Service sector strength has been broad based. In the year to November, service industries have had an average PSI reading well above the breakeven 50 mark.
Read more  

Capacity Pressures

Interestingly, PSI employment is only marginally above average. This is despite the demand indicators like sales and new orders being so strong.
Read more  

Firm Demand Signals

Christmas quarter sales look to be shaping up well judging by the ongoing strength in the PSI distribution sector indicators. Although these figures are not seasonally adjusted, retail, at 60.7, is above its November average.
Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Nov
2015
Jul
2016
Aug
2016
Sep
2016
Oct
2016
Nov
2016
BNZ - BusinessNZ PSI 58.554.558.054.456.657.9
Activity/Sales 60.657.561.757.759.164.2
Employment55.353.754.351.754.652.2
New Orders/Business62.557.260.356.157.661.7
Stocks/Inventories56.651.555.953.253.952.1
Supplier Deliveries56.847.456.252.054.756.0

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2012 – November 2016

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
5 Dec 2016

53.3

International PSI

BNZ - BusinessNZ PCI

57.2

GDP-Weighted Index

56.2

Free-Weighted Index

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) saw the two options for measuring the PCI both showing improved expansion from October to November.

The November GDP-Weighted Index (57.2) increased 0.7 points from October, while the Free-Weighted Index (56.2) rose 0.6 points. The increase in both options was due to the stronger result for the PSI.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Nov
2015
Jul
2016
Aug
2016
Sep
2016
Oct
2016
Nov
2016
GDP-Weighted Index 57.954.657.754.856.557.2
Free-Weighted Index56.855.456.755.855.656.2

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2012 – 2016

PCI Time Series Graph