BNZ – BusinessNZ
Performance of
Services Index

Even keel – PSI

17 Jul, 2017
58.6
June
-0.2

Monthly Change

expanding
slower rate

New Zealand’s services sector stayed at a similar level of healthy expansion for June, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for June was 58.6. This was only 0.2 points lower than May, and a continuation of very solid results for most of 2017 (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 overall, the PSI has remained a consistent performer in terms of expansion levels.

“Both activity/sales (59.4) and new orders (64.1) have ensured overall activity levels close to the 60-point mark, while business activity comments have typically been two to one in favour of positive influences.”

BNZ Senior Economist Craig Ebert said “the big rebound that the PSI traced in May pretty much stuck fast in June, with the latest robustness spread right across the main sub-indices”.

Kirk Hope

Kirk Hope

CEO, BusinessNZ

BNZ - BusinessNZ PSI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PSI

Services Landscape

The PSI

The big rebound that the Performance of Services Index (PSI) traced in May pretty much stuck fast in June. In terms of the seasonally adjusted index, we’re talking 58.6, from 58.8 (after the big deceleration it posted in April, skidding down to 53.0).
Read more

QSBO Services

That the services sector continues to roll on was also evident in July’s Quarterly Survey of Business Opinion (QSBO). Services sector respondents to this NZIER survey had net confidence of +20, seasonally adjusted.
Read more

GDP

With respect to GDP, the recent results of the PSI are obviously supportive of ongoing solid expansion. The PMI has been saying the same thing, in also running above its long-term average.
Read more

Housing

In an otherwise robust-looking NZ economy, we continue to wonder about where the housing and construction markets are going to end up, given their extremely stretched starting points. That’s not to say we are forecasting a big dip, although the risks of such are there.
Read more

Craig Ebert

Craig Ebert

Senior Economist, BNZ

Sponsor Statement

BNZ is delighted to be associated with the Performance of Services Index (PSI) and BusinessNZ.

This association brings together the significant experience of leading business advocacy body BusinessNZ, and business finance specialist BNZ.

We look forward to continuing our association with BusinessNZ and associated regional organisations, and to playing our part in the ongoing development of the New Zealand service sector.

PSI Time Series Table

The results are seasonally adjusted.

National Indicies June
2016
Feb
2017
Mar
2017
Apr
2017
May
2017
Jun
2017
BNZ – BusinessNZ PSI 56.6 58.6 58.8 53.0 58.8 58.6
Activity/Sales 58.7 60.5 61.0 52.1 62.9 59.4
Employment 54.6 54.6 53.0 55.7 54.4 54.2
New Orders/Business 58.1 61.8 65.7 55.7 63.2 64.1
Stocks/Inventories 53.7 57.5 56.8 46.3 54.7 55.2
Supplier Deliveries 55.1 58.4 55.8 48.2 55.5 57.4

BNZ – BusinessNZ PSI Time Series

June 2013 – June 2017

International Results

J.P. Morgan Global Manufacturing PSITM

06 Jul 2017
53.8

About the PSI

The BNZ – BusinessNZ Performance of Services Index is a monthly survey of the service sector providing an early indicator of activity levels.

A PSI reading above 50 points indicates service activity is expanding; below 50 indicates it is contracting.

The main PSI and sub-index results are seasonally adjusted.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PSI Releases

Path of expansion

New Zealand’s services sector continued its path of expansion in February, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for February was 53.0 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Green shoots?

New Zealand’s services sector climbed back into expansion for the start of 2024, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for January was 52.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

Activity on holiday

New Zealand’s services sector fell back into contraction during December, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for December was 48.8 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Over the line

New Zealand’s services sector recorded expansion in November, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for November was 51.2 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is...

Lost momentum

New Zealand’s services sector went back into contraction in October, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for October was 48.9 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

BNZ – BusinessNZ
Performance of
Composite Index

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 decrease in June.

The June GDP-Weighted Index (58.0) slipped 0.6 points from May, while the Free-Weighted Index (57.6) decreased 1.5 points. The stronger drop in the latter was due to lower expansion levels in the manufacturing result.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Jun
2016
Feb
2017
Mar
2017
Apr
2017
May
2017
Jun
2017
GDP-Weighted Index 56.6 58.2 58.7 53.7 58.6 58.0
Free-Weighted Index 57.1 57.6 58.5 54.8 59.1 57.6

BNZ – BusinessNZ PCI Time Series

June 2013 – June 2017

About the PCI

The BNZ – BusinessNZ Performance of Composite Index (PCI) takes into account results from both the Performance of Manufacturing Index (PMI) and the Performance of Services Index (PSI). Combined results are shown in two ways:

GDP-Weighted Index:
Apportions the weight of the manufacturing and services index within the economy to produce an overall result.

Free-Weighted Index:
Combines data from both indexes to produce an overall result.

Both time series for the PCI are then seasonally adjusted.

BNZ - BusinessNZ PCI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PCI

Our Contributors

The BNZ – BusinessNZ PSI contains data obtained through BusinessNZ’s regional organisations