Back on track – PSI

19 Jun 2017

58.8

May

+5.6

Monthly Change

expanding

faster rate

View Kirk Hope's profile

Kirk Hope

Chief Executive, BusinessNZ

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New Zealand's services sector returned to its recent level of consistent and healthy expansion during May, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for May was 58.8. This was 5.6 points higher than April, and a return to expansion levels seen during five of the last six months (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 as mentioned last month, April's drop was due to a number of external factors, which have corrected themselves for May.

"Four of the five sub-indices increased in expansion levels during May, with the key indicators of activity/sales (63.1) and new orders/business (63.2) both back over the 60-point mark."

"With the proportion of positive comments (68.2%) from respondents also at a very healthy level, we would expect continued expansion ahead."

BNZ Senior Economist Craig Ebert said "we were relieved to see the PSI return with such a vengeance in May.  We'll take a (seasonally adjusted) result of 58.8 any day of the week".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

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It turned out that New Zealand's Performance of Services Index (PSI) had a bungee cord tied firmly around its ankles.
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Services GDP

The services sector has been the quiet achiever of the NZ economy, for a number of years now.
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Retail

The retail component of Q1 GDP was very expansive. However, we are wondering how well it will do in Q2.
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Housing

While house prices in Auckland appear to be levelling off now (albeit at stratospheric levels) around the rest of country they mostly retain momentum.
Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies May
2016
Jan
2017
Feb
2017
Mar
2017
Apr
2017
May
2017
BNZ - BusinessNZ PSI 56.859.458.658.853.258.8
Activity/Sales 59.460.760.561.152.463.1
Employment54.753.754.653.055.754.4
New Orders/Business59.964.261.965.855.563.2
Stocks/Inventories53.457.457.556.946.454.9
Supplier Deliveries53.756.758.455.748.255.4

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2012 – May 2017

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
5 Jun 2017

53.8

International PSI

BNZ - BusinessNZ PCI

58.5

GDP-Weighted Index

59.3

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 increase in May.

The May GDP-Weighted Index (58.5) rose 4.7 points from April, while the Free-Weighted Index (59.3) increased 4.5 points. The pick up in both indices was due to a lift in the services sector result, with the latter at its highest level since July 2013.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies May
2016
Jan
2017
Feb
2017
Mar
2017
Apr
2017
May
2017
GDP-Weighted Index 56.758.658.258.753.858.5
Free-Weighted Index57.356.957.658.554.859.3

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2012 – May 2017

PCI Time Series Graph