Smooth operator – PSI

19 Sep 2016

57.9

August

+3.4

Monthly Change

expanding

faster rate

View Kirk Hope's profile

Kirk Hope

Chief Executive, BusinessNZ

View profile

New Zealand's services sector experienced an increase in expansion across all main indicators, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for August was 57.9. This was 3.4 points up from July, and the highest value since December 2015 (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 it was pleasing to see all sub-indexes improve from July, with activity/sales (61.6) and new orders/business (60.8) both rising back above the 60 point range.

"Looking at comments, the proportion of positive comments for August (65.2%) was largely unchanged from July (65.6%), with a number mentioning new customers and markets creating enhanced opportunities for growth."

Regarding the latest PSI results, BNZ Senior Economist Doug Steel said "The widespread positivity in August's PSI combined with the overall good-looking Performance of Manufacturing Index from last week indicates above trend economic growth has continued into the second half of the year".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

Super Service

Super service returns. After July's dip to an averagelooking 54.5, the Performance of Services Index (PSI) bounced back strongly in August, to 57.9.

Read more  

Growth Supportive

The widespread positivity in August's PSI combined with the overall good-looking Performance of Manufacturing Index from last week indicates above trend economic growth has continued.

Read more  

Employment Trends Strong

PSI employment remained very firm, at 54.3 in August from 53.8 in July. It is a useful offset to the employment dip we saw in the PMI last week.

Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Aug
2015
Apr
2015
May
2016
Jun
2016
Jul
2016
Aug
2016
BNZ - BusinessNZ PSI 57.557.856.956.654.557.9
Activity/Sales 61.063.160.158.057.561.6
Employment53.753.854.454.953.854.3
New Orders/Business63.461.359.958.357.760.8
Stocks/Inventories51.552.652.553.551.555.9
Supplier Deliveries53.054.852.955.747.556.4

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2012 – August 2016

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
5 Sep 2016

51.5

International PSI

BNZ - BusinessNZ PCI

57.8

GDP-Weighted Index

56.8

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 from July to August.

The August GDP-Weighted Index (57.8) increased 3.1 points from July, while the Free-Weighted Index (56.8) rose 1.3 points. The pick up in the GDP-Weighted result was mainly due to a stronger PSI value for August after a dip in expansion during July.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Aug
2015
Apr
2016
May
2016
Jun
2016
Jul
2016
Aug
2016
GDP-Weighted Index 57.157.756.956.854.757.8
Free-Weighted Index56.857.257.457.155.556.8

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2013 – 2016

PCI Time Series Graph