Even keel – PSI

17 Jul 2017

58.6

June

-0.2

Monthly Change

expanding

slower rate

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Kirk Hope

Chief Executive, BusinessNZ

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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".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

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

View the BNZ Services Landscape

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 56.658.658.853.058.858.6
Activity/Sales 58.760.561.052.162.959.4
Employment54.654.653.055.754.454.2
New Orders/Business58.161.865.755.763.264.1
Stocks/Inventories53.757.556.846.354.755.2
Supplier Deliveries55.158.455.848.255.557.4

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2012 – June 2017

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
6 Jul 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 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 56.658.258.753.758.658.0
Free-Weighted Index57.157.658.554.859.157.6

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2012 – June 2017

PCI Time Series Graph