Humming along – PSI

20 Jul 2015

58.2

June

+0.1

Monthly Change

expanding

faster rate

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Phil O'Reilly

Executive Assistant, Sustainable Business Council & BusinessNZ Energy Council,

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New Zealand's services sector held its own in June as activity remained at a healthy level of expansion, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for June was 58.2. This was 0.1 point higher than May, and the highest overall value since July 2014 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).

BusinessNZ chief executive Phil O'Reilly said that the consistent level of expansion over the first six months of 2015 has been helped by both activity/sales and new orders remaining within a fairly tight band of expansion.

"Although the proportion of positive comments from businesses during June (61.6%) was down from May (70%), the sector continues to display broad positive growth ".

BNZ senior economist Craig Ebert said that, "Whether parsed by region, industry type, or firm size, every bit of the PSI was in expansion mode, which is rare. Combined with the improved PMI reading for June (55.2) the latest PSI paints a picture of an economy expanding robustly, probably a little better than average."

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
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Craig Ebert

Senior Economist, BNZ

Services Activity

The dairy sector is facing tough times and some construction indicators are slowing.
Read more  

Consumer Spending

To be sure, the NZIER Quarterly Survey of Business Opinion contained an abruptly slower pulse amongst merchants.
Read more  

Tourism Booming

Short-term visitor arrivals have been booming this year. Some of this has related to the February/March Cricket World Cup and the May/June under-20 FIFA World Cup.
Read more  

Housing's Ups Downs and Sideways

The Real Estate Institute's data for June confirmed that the Auckland housing market is ablaze, with prices up around 25%, y/y, and that there is a flattening, even negative, trend in Canterbury now, as its recent housebuilding boom begins to take the pressure off.
Read more .

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies June
2014
Feb
2015
Mar
2015
Apr
2015
May
2015
June
2015
BNZ - BusinessNZ PSI 55.456.057.656.758.158.2
Activity/Sales 55.562.160.360.662.960.2
Employment52.852.954.953.856.354.2
New Orders/Business59.458.661.062.763.163.0
Stocks/Inventories54.153.058.651.450.553.4
Supplier Deliveries53.251.053.449.949.956.1

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

July 2014 – June 2015

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
6 Jul 2015

53.5

International PSI

BNZ - BusinessNZ PCI

57.8

GDP-Weighted Index

57.2

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 experience another increase in expansion for June.

The GDP-Weighted Index (57.8) increased 0.6 points, while the Free-Weighted Index (57.2) rose 1.5 points. This is the closest the two measurements have been to each other since December 2014.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Jun
2014
Feb
2015
Mar
2015
Apr
2015
May
2015
Jun
2015
GDP-Weighted Index 55.155.857.156.157.257.8
Free-Weighted Index54.856.656.455.455.757.2

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

July 2014 – 2015

PCI Time Series Graph