Softening in September – PSI 17 Oct 2016 54.1September-3.8Monthly Changeexpandingslower rate Kirk Hope Chief Executive, View profile New Zealand's services sector experienced a softening in expansion across all main indicators, according to the BNZ - BusinessNZ Performance of Services Index (PSI).The PSI for September was 54.1. This was 3.8 points down from August, and very similar to the 54.3 recorded in July (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 while the September result still indicated healthy expansion, comments from respondents tended to show a few seasonal factors at play that gave pause to expansion."A number of those who provided negative comments tended to focus on current weather conditions, as well as school holidays affecting operations. This culminated in the proportion of negative comments rising from 34.8% in August to 39.3% in September."Regarding the latest PSI results, BNZ Senior Economist Doug Steel said "looking through the monthly volatility, there has been some trend slowing in the PSI over recent months. It appears firm's difficulty in finding staff is one of the obviously many factors involved". View the PSI Time Series Data Main Indicies Regional Results Doug SteelSenior Economist, BNZ Slower serviceThe Performance of Services Index (PSI) suggests service sector growth is tempering. The PSI slowed to a middling 54.1 in September from a very strong 57.9 in August.Read more Are large firms telling us something?Expansion, albeit at a touch slower pace, remains widespread with positive readings across the major headline indices covering sales, employment, and new orders as well as across all industries and regions and most firm sizes.Read more Economic growth robust, but is it slowing?Combining the PSI and PMI, into a composite (PCI) indicator, suggests ongoing robust economic growth into year's end. But the hint, from the PCI, that growth may be slowing is in contrast to the general strengthening in other recent business (and consumer) confidence surveysRead more View the BNZ Services Landscape PSI Time Series TableThe results are seasonally adjusted. National Indicies Sep2015 May2016 Jun2016 Jul2016 Aug2016 Sep2016 BNZ - BusinessNZ PSI 59.256.956.554.357.954.1 Activity/Sales 63.260.057.857.361.457.3 Employment54.054.754.553.754.251.6 New Orders/Business63.560.158.357.460.456.0 Stocks/Inventories57.052.553.551.555.853.3 Supplier Deliveries55.752.755.447.656.351.7 View the PSI Time Series Data BNZ - BusinessNZ PSI Time SeriesJuly 2014 – September 2016 International ResultsJ.P. Morgan Global Manufacturing PSITM 5 Oct 201651.5 54.6GDP-Weighted Index55.9Free-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 decrease in expansion from August to September. The September GDP-Weighted Index (54.6) decreased 2.9 points from August, while the Free-Weighted Index (55.9) fell 0.8 points. The stronger decrease in the GDP-Weighted result was mainly due to a weaker PSI value for September. PCI Time Series TableThe results are seasonally adjusted. National Indicies Sep2015 May2016 Jun2016 Jul2016 Aug2016 Sep2016 GDP-Weighted Index 58.657.056.854.657.554.6 Free-Weighted Index57.257.557.155.556.755.9 View the PCI Time Series Data BNZ - BusinessNZ PCI Time SeriesJuly 2014 – 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 Softening in September – PSI Spring is in the air Smooth operator – PSI Easing expansion – PSI Consistent service – PSI View more