Onwards and upwards – PSI

15 Nov 2016

56.3

October

+2.1

Monthly Change

expanding

faster rate

View Kirk Hope's profile

Kirk Hope

Chief Executive, BusinessNZ

View profile

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".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape

View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

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

View the BNZ Services Landscape

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 56.056.554.457.854.256.3
Activity/Sales 57.457.857.361.457.358.4
Employment52.954.553.854.451.654.7
New Orders/Business56.858.257.360.355.856.3
Stocks/Inventories55.953.551.555.953.354.0
Supplier Deliveries55.755.547.556.151.954.6

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2016 – October 2016

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
4 Nov 2016

53.2

International PSI

BNZ - BusinessNZ PCI

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 55.856.754.657.654.756.3
Free-Weighted Index54.357.155.556.755.855.4

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2016 – October 2016

PCI Time Series Graph