Scaling the heights – PSI

15 Jun 2015

58.0

May

+1.5

Monthly Change

expanding

faster rate

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Phil O'Reilly

Executive Assistant, BusinessNZ

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New Zealand's services sector showed further expansion in May as key indices continued to scale the heights, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for May was 58.0. This was 1.5 points higher than April, 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 key indicators of activity/sales and new orders/business pushed further into the 60+ value range, indicating strong expansion.

"It is also important to note that the employment index for May (56.3) reached its highest value since the PSI survey began in 2007. Combining this with a boost in the proportion of positive comments from businesses (almost 70%), means the services sector experienced a bumper result in May".

BNZ senior economist Doug Steel said that the service sector has been a standout performer for some time. May's PSI results simply reinforce this narrative.

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
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Doug Steel

Senior Economist, BNZ

Services

The service sector has been a standout performer over recent times. The Performance of Services Index tells the story.
Read more  

Positive External Services Trade

External trade has supported services growth. Tourism is part of this, as is an increase in the number of international students.
Read more  

Housing and construction

The construction industry remains important for the service sector's (and New Zealand economy's) next moves (along with house prices, migration, the dairy sector and most things global).
Read more  

Wholesaling

Official figures show that wholesale sales fell a seasonally adjusted 0.8% in the first quarter of 2015 such that sales were a relatively subdued 1.8% higher than a year ago.
Read more .

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies May
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
BNZ - BusinessNZ PSI 54.256.757.957.656.558.0
Activity/Sales 53.857.760.660.360.663.0
Employment51.852.055.054.953.956.3
New Orders/Business60.160.861.461.062.763.1
Stocks/Inventories53.354.752.658.651.150.3
Supplier Deliveries49.956.054.653.349.749.4

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

July 2014 – May 2015

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
3 Jun 2015

54.1

International PSI

BNZ - BusinessNZ PCI

56.9

GDP-Weighted Index

55.5

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 an increase in expansion for May.

The GDP-Weighted Index (56.9) increased 0.9 points, while the Free-Weighted Index (55.5) rose 0.1 points. The increase in both indices was primarily due to expansion in the services sector.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies May
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
GDP-Weighted Index 54.057.056.057.156.056.9
Free-Weighted Index54.554.956.756.455.455.5

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

July 2014 – May 2015

PCI Time Series Graph