Stable services – PSI

20 Mar 2017

58.8

February

-0.7

Monthly Change

expanding

slower rate

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Kirk Hope

Chief Executive, BusinessNZ

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New Zealand's services sector remains at a stable and solid level of expansion, according to the BNZ - BusinessNZ Performance of Services Index (PSI).
 
The PSI for February was 58.8.  Although this was 0.7 points lower than January, it was still the second highest level of expansion since November 2015 (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 services sector has remained in a consistent and positive level of expansion for the last four months.

"What's continued to drive solid expansion levels has been in no small part due to the sub-indices of activity/sales and new orders/business remaining over the 60-point mark".
 
BNZ Senior Economist Doug Steel said "with minimal movement over recent months, and even not all much change of the past four years, it might have some wondering if the PSI is telling us anything at all.  In fact, we think it is quite revealing in that the PSI is growing at a strong and steady pace".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

Steady Strong Service

New Zealand's Performance of Services Index (PSI) remains very strong. February's 58.8 result is little changed from January's 59.5. Indeed, the PSI has remained in a tight 58.3 to 59.5 range over the past four months.
Read more

Good For Growth

Ongoing PSI strength in January and February bodes well for GDP growth ahead. So too the bounce in the Performance of Manufacturing Index (PMI) for February published last Friday.
Read more

Sales and Orders

The PSI details support the headline positivity, with broadbased strength. The sales and new orders components continue to lead the charge – both posting their fourth consecutive month above the 60 mark.
Read more

Houses and Building

Despite the widespread near term positive growth signals above, we are alert to some other indicators cooling over recent months.
Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Feb
2016
Oct
2016
Nov
2016
Dec
2016
Jan
2017
Feb
2017
BNZ - BusinessNZ PSI 57.456.858.358.559.558.8
Activity/Sales 60.259.164.663.260.760.6
Employment53.754.752.454.153.754.6
New Orders/Business62.258.062.261.364.061.8
Stocks/Inventories53.854.252.553.257.457.5
Supplier Deliveries53.755.056.457.057.158.8

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2012 – February 2017

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
3 Mar 2017

53.3

International PSI

BNZ - BusinessNZ PCI

58.3

GDP-Weighted Index

57.4

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 showing contrasting results.

The February GDP-Weighted Index (58.3) decreased 0.4 points from January, while the Free-Weighted Index (57.4) rose 0.6 points.  The pick up in the Free-Weighted Index was mainly due to the lift in manufacturing activity.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Feb
2016
Oct
2016
Nov
2016
Dec
2016
Jan
2017
Feb
2017
GDP-Weighted Index 57.056.657.558.058.758.3
Free-Weighted Index56.855.756.556.556.857.4

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2013 – February 2017

PCI Time Series Graph