In the zone – PSI

17 Aug 2015

56.5

July

-1.6

Monthly Change

expanding

slower rate

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Phil O'Reilly

Executive Assistant, SBC & BEC

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New Zealand's services sector remained in the zone of healthy expansion, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for July was 56.5. Although this was 1.6 points lower than June, it continued a noteable stretch of expansion in the sector between the 56-58 mark (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 PSI for July displayed the fundamentals of continuing growth, which is encouraging given a number of headwinds within the New Zealand economy at present.

"The proportion of positive comments in July (64.1%) was up on June, with respondents outlining new business/orders and product development as key ingredients for influences on activity. To a lesser extent, the recent fall in the value of the New Zealand dollar has also assisted expansion".

BNZ Senior Economist Doug Steel said while lower dairy prices and flattening residential building activity would likely slow NZ's economic growth over time, the latest solid readings from the service and manufacturing sectors shows there were still other factors driving decent growth in the meantime.

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
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Doug Steel

Senior Economist, BNZ

Services Add To Manufacturing Growth

The Performance of Services Index (PSI) maintained a solid growth pulse in July.
Read more  

Spending Up

Electronic card transactions proved quite strong in July. Total transactions were up 6.8% on a year ago.
Read more  

Accommodation

International visitor arrivals continue to significantly outnumber year earlier levels. Mid-year figures show visitor numbers are up around 9% on a year ago.
Read more  

Construction and housing

Some lead indicators for house construction have cooled over recent months with a flattening in the number of residential building consents.
Read more .

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies July
2014
Mar
2015
Apr
2015
May
2015
Jun
2015
Jul
2015
BNZ - BusinessNZ PSI 58.457.656.757.958.156.5
Activity/Sales 61.860.260.562.760.160.4
53.8 54.554.953.856.254.153.8
New Orders/Business63.961.062.763.062.760.4
Stocks/Inventories52.858.651.450.453.451.0
Supplier Deliveries55.353.650.350.355.654.0

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2012 – July 2015

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
5 Aug 2015

53.9

International PSI

BNZ - BusinessNZ PCI

56.0

GDP-Weighted Index

55.6

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 a decrease in expansion for July.

The GDP-Weighted Index (56.0) decreased 1.7 points, while the Free-Weighted Index (55.6) dropped 1.5 points, returning to the same level as May. This is the closest the two measurements have been to each other since December 2014, which also saw a 0.4 point differential.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Jul
2014
Mar
2015
Apr
2015
May
2015
Jun
2015
Jul
2015
GDP-Weighted Index 57.757.156.157.057.756.0
Free-Weighted Index56.656.455.455.657.155.6

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2013 – 2015

PCI Time Series Graph