Easing expansion – PSI 15 Aug 2016 54.2July-2.2Monthly Changeexpandingslower rate Kirk Hope Chief Executive, BusinessNZ View profile New Zealand's services sector experienced a dip in expansion levels during July, according to the BNZ - BusinessNZ Performance of Services Index (PSI). The PSI for July was 54.2. This was 2.2 points down from June, and the lowest value since November 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 Kirk Hope said that despite the dip in expansion levels for July, the primary components involving activity/sales (57.3) and new orders/business (57.4) remained very healthy. "Looking at comments, the proportion of positive comments actually increased from 59.3% in June to 65.6% in July. Also, negative comments were strongly based around seasonal factors, with both the weather and school holidays mentioned numerous times. Regarding the latest PSI and PMI results, BNZ Senior Economist Doug Steel said "With July's PSI around about average, and the PMI holding above its norm, combined they suggest the economy is expanding at a rate around, or slightly above, trend. In numbers, this infers annual GDP growth circa 3%". View the PSI Time Series Data Main Indicies Regional Results Doug SteelSenior Economist, BNZ Slower ServiceThe Performance of Services Index (PSI) dropped a couple of points in July, to a seasonally adjusted 54.2 from 56.4 in June. July's result is the lowest since November 2014. Service sector growth seems to have slowed a bit from its recent strong run. It is something to note.Read more GDP ImplicationsWith July's PSI around about average, and the PMI holding above its norm, combined they suggest the economy is expanding at a rate around, or slightly above, trend. In numbers, this infers annual GDP growth circa 3%.Read more AccommodatingOne of the industries at the forefront of New Zealand's current GDP expansion is tourism. July's Accommodation Survey attested to this. International guest nights were 13.7% higher than their level of a year ago. This continued the pace we've seen the very start of the year.Read more Retail ExpenditureJuly's PSI measured a bit of a slowing in its retail component (to an unadjusted index reading of 54.9). Nonetheless, it was still clearly expansive. And other indicators of retail spending remain positively upbeat.Read more . View the BNZ Services Landscape PSI Time Series TableThe results are seasonally adjusted. National Indicies Jul2015 Mar2015 Apr2016 May2016 Jun2016 Jul2016 BNZ - BusinessNZ PSI 57.055.157.756.756.454.2 Activity/Sales 60.659.863.059.957.857.3 Employment53.753.053.854.454.853.8 New Orders/Business60.857.461.359.958.157.4 Stocks/Inventories52.252.552.552.353.251.1 Supplier Deliveries55.151.254.252.154.948.4 View the PSI Time Series Data BNZ - BusinessNZ PSI Time SeriesJuly 2014 – July 2016 International ResultsJ.P. Morgan Global Manufacturing PSITM 3 Aug 201651.3 54.5GDP-Weighted Index55.4Free-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 dip in expansion from June to July.The July GDP-Weighted Index (54.5) decreased 2.2 points from June, while the Free-Weighted Index (55.4) decreased 1.6 points. The lower GDP-Weighted result was mainly due to a lower PSI value for July. PCI Time Series TableThe results are seasonally adjusted. National Indicies Jul2015 Mar2016 Apr2016 May2016 Jun2016 Jul2016 GDP-Weighted Index 56.755.157.756.756.754.5 Free-Weighted Index56.255.157.257.457.055.4 View the PCI Time Series Data BNZ - BusinessNZ PCI Time Series July 2014 – July 2016 In this section Surveys & Statistics Performance of Manufacturing Index Performance of Services Index Compliance Cost Survey Exporters Survey Southern Cross Health Society - BusinessNZ Wellness in the Workplace Survey Reports & Publications BusinessNZ Planning Forecast International Guides & Tools BNZ - BusinessNZ PSI Time Series Data View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PSI BNZ - BusinessNZ PCI Time Series Data View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ combined PMI & PSI. BNZ is delighted to be associated with the Performance of Services Index (PSI) and BusinessNZ.This association brings together the significant experience of leading business advocacy body BusinessNZ, and business finance specialist BNZ.We look forward to continuing our association with BusinessNZ and associated regional organisations, and to playing our part in the ongoing development of the New Zealand service sector. View website Media Comment For media comment, please contact: Kirk Hope, 04 496 6560 Doug Steel, BNZ 04 474 6799 Technical Comment For more information or assistance with data interpretation, please contact: Steve Summers 04 496 6564 ssummers@businessnz.org.nz Our ContributorsThe BNZ - BusinessNZ PSI contains data obtained through BusinessNZ's regional organisations About the PSIThe BNZ - BusinessNZ Performance of Services Index is a monthly survey of the service sector providing an early indicator of activity levels.A PSI reading above 50 points indicates service activity is expanding; below 50 indicates it is contracting.The main PSI and sub-index results are seasonally adjusted.About the PCIThe BNZ - BusinessNZ Performance of Composite Index (PCI) takes into account results from both the Performance of Manufacturing Index (PMI) and the Performance of Services Index (PSI). Combined results are shown in two ways: GDP-Weighted Index: Apportions the weight of the manufacturing and services index within the economy to produce an overall result. Free-Weighted Index: Combines data from both indexes to produce an overall result.Both time series for the PCI are then seasonally adjusted. Related Articles RMA shakeup long overdue Softening in September – PSI Spring is in the air Smooth operator – PSI Easing expansion – PSI View more