Stepping up – PSI

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19 Apr 2017

59.0

March

+0.3

Monthly Change

expanding

faster rate

View Kirk Hope's profile

Kirk Hope

Chief Executive, BusinessNZ

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New Zealand's services sector continued to show increased expansion during March, according to the BNZ - BusinessNZ Performance of Services Index (PSI).
 
The PSI for March was 59.0.  This was 0.3 points higher than February, and the second highest level of expansion over the last 18 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 the strong result shown for the new orders/business sub-index contributed towards the higher March figure.

"New orders/business (66.4) were at its highest level since June 2007, which should feed through to activity/sales in the months ahead.  Combined with 65.6% of respondents providing positive comments, the sector is currently in a solid and positive place".
 
BNZ Senior Economist Doug Steel said that "the PSI has been a bit like a stuck record, set on high volume. In fact, the volume dial is even getting tweaked up a bit more".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

Stuck Strong

New Zealand's Performance of Services Index (PSI) has been persistently strong over the past few months. It's been a bit like a stuck record, set on high volume. In fact, the volume dial is even getting tweaked up a bit more.
Read more

Difficult Finding Help

Interestingly, employment was one of the relatively weaker components of the PSI. We say 'relatively' because, at 52.8, it still implies reasonable employment growth.
Read more

Spending Up

The unadjusted PSI for retail trade punched up to 63.0 in March, well above its average for this time of year. Electronic card transaction data supports the buoyant demand story.
Read more

Housing

The 8,504 house sales in March were 10.7% down on a year earlier. No surprise then to see spending on durable goods as one of the weaker categories in the electronic transactions data over the past year.
Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Mar
2016
Nov
2016
Dec
2016
Jan
2017
Feb
2017
Mar
2017
BNZ - BusinessNZ PSI 55.358.458.559.458.759.0
Activity/Sales 59.864.663.260.660.661.1
Employment53.452.354.453.354.752.8
New Orders/Business57.162.261.364.262.066.4
Stocks/Inventories52.452.553.357.557.757.4
Supplier Deliveries52.256.457.057.058.656.0

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2012 – March 2017

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
5 Apr 2017

53.6

International PSI

BNZ - BusinessNZ PCI

59.0

GDP-Weighted Index

58.7

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 March.
 
The March GDP-Weighted Index (59.0) increased 0.8 points from February, while the Free-Weighted Index (58.7) rose 1.1 points.  The pick up in both indices was due to a combined lift in activity across both the manufacturing and services sectors.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Mar
2016
Nov
2016
Dec
2016
Jan
2017
Feb
2017
Mar
2017
GDP-Weighted Index 55.257.558.058.758.259.0
Free-Weighted Index54.556.656.656.957.658.7

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2012 – March 2017

PCI Time Series Graph