BNZ – BusinessNZ
Performance of
Services Index

Onwards and upwards – PSI

15 Nov, 2016
56.3
October
+2.1

Monthly Change

expanding
faster rate

New Zealand’s services sector experienced a pick-up in expansion during October, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
 
The PSI for October was 56.3.  This was 2.1 points up from September, and similar to results mid-way through 2016 (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 after a drop in expansion during September, the pick-up was welcome, with all sub-indices showing stronger results.

“It was welcoming to see the key indicators of activity/sales(58.4) and new orders/business (56.3) showing stronger expansion, with the former at its second highest level for the last five months.  Also,employment (54.7) bounced back to its highest level of expansion since May.”

Regarding the latest PSI results, BNZ Senior Economist Doug Steel said “the PSI indicates above trend economic growth is continuing. Strong results right across the distribution sector is more evidence of buoyant domestic spending and a booming tourism industry”.

Kirk Hope

Kirk Hope

CEO, BusinessNZ

BNZ - BusinessNZ PSI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PSI

Services Landscape

Brighter Days

Last month, we wondered if the Performance of Services Index (PSI) had been dented a bit by such things as poor weather perhaps in combination with the school holidays.  Whether this was actually the case or not is difficult to tell, but the PSI did bounce back to a firm 56.3 in October from its dip to a middling 54.2 in September.
Read more  

Spending Up

Current spending indicators are unequivocally strong.  In the PSI, retail was one industry that stood out in October. Its 63.6 reading, on an unadjusted basis, was the second strongest across industries.
Read more  

Property Less Positive

The PSI for the property and business service industry, while still positive at 52.3 in October, has slowed a bit over recent months.
Read more

Doug Steel

Doug Steel

Senior Economist, BNZ

Sponsor Statement

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.

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Oct
2015
Jun
2016
Jul
2016
Aug
2016
Sep
2016
Oct
2016
BNZ – BusinessNZ PSI 56.0 56.5 54.4 57.8 54.2 56.3
Activity/Sales 57.4 57.8 57.3 61.4 57.3 58.4
Employment 52.9 54.5 53.8 54.4 51.6 54.7
New Orders/Business 56.8 58.2 57.3 60.3 55.8 56.3
Stocks/Inventories 55.9 53.5 51.5 55.9 53.3 54.0
Supplier Deliveries 55.7 55.5 47.5 56.1 51.9 54.6

BNZ – BusinessNZ PSI Time Series

October 2012 – October 2016

International Results

J.P. Morgan Global Manufacturing PSITM

04 Nov 2016
53.2

About the PSI

The 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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PSI Releases

Path of expansion

New Zealand’s services sector continued its path of expansion in February, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for February was 53.0 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Green shoots?

New Zealand’s services sector climbed back into expansion for the start of 2024, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for January was 52.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

Activity on holiday

New Zealand’s services sector fell back into contraction during December, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for December was 48.8 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Over the line

New Zealand’s services sector recorded expansion in November, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for November was 51.2 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is...

Lost momentum

New Zealand’s services sector went back into contraction in October, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for October was 48.9 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

BNZ – BusinessNZ
Performance of
Composite Index

56.3

GDP-Weighted Index

55.4

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 show contrasting results in expansion from September to October.
 
The October GDP-Weighted Index (56.3) increased 1.6 points from September, while the Free-Weighted Index (55.4) slipped 0.4 points. The increase in the GDP-Weighted result was mainly due to a stronger PSI value for September, while the dip in expansion levels for the PMI outweighed the pick-up in the PSI for the Free-weighted Index.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Oct
2015
Jun
2016
Jul
2016
Aug
2016
Sep
2016
Oct
2016
GDP-Weighted Index 55.8 56.7 54.6 57.6 54.7 56.3
Free-Weighted Index 54.3 57.1 55.5 56.7 55.8 55.4

BNZ – BusinessNZ PCI Time Series

October 2012 – October 2016

About the PCI

The 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.

BNZ - BusinessNZ PCI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PCI

Our Contributors

The BNZ – BusinessNZ PSI contains data obtained through BusinessNZ’s regional organisations