Kirk Hope

Chief Executive, BusinessNZ

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Activity in New Zealand’s services sector lifted slightly during November, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for November was 56.4, which was 0.7 points higher than October (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  It also stopped two consecutive months of lower expansion in the sector.

BusinessNZ chief executive Kirk Hope said that the sector remains in solid territory, with the slight lift in expansion levels boosted with a pick up in the key sub-indices of both activity/sales (60.5) and new orders/business (60.7).

“It was also good to see the proportion of positive comments for November (68.7%) build on the substantive lift in October (67.6%), with many outlining seasonal factors at play".

BNZ Senior Economist Doug Steel said that "positive signs were widespread across the PSI with expansionary readings seen in the unadjusted results across all industries, regions, sub components, and firm sizes".

View the PSI Time Series Data

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Main Indicies

Regional Results

Doug Steel

Senior Economist, BNZ

Services Solid

Positive signals continue to hold sway in the Performance of Services Index (PSI). November’s 56.4 remains comfortably above its long term average of 54.4 indicating more above average growth in the serve sector.
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Demand Robust

Last week’s electronic card transactions data for November also indicated demand has strengthened. The value of transactions rose a seasonally adjusted 1.4% in the month, with other indicators suggesting positive momentum has continued into December.
Read more

Employment Slower

Just like in October, employment was a relatively softer component of the PSI in November. This may still reflect a period of caution post-election or may be a consequence of employers having difficulty finding appropriate staff.
Read more

Housing

The Real Estate Institute housing figures for November looked better. Sure, November sales were down 8.9% on a year ago, but it represents a claw-back from -15.8% in October and -26.2% in September.
Read more

View the BNZ Services Landscape

BNZ - BusinessNZ PSI Time Series

July 2014 – November 2017

International Results

J.P. Morgan Global Manufacturing PSI^TM
5 Dec 2017

53.7

56.5

GDP-Weighted Index

57.7

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 experiencing an increase in expansion during November.

The November GDP-Weighted Index (56.5) rose 0.6 points from the previous month, while the Free-Weighted Index (57.7) increased 0.8 points.  Given expansion levels for the manufacturing and services sectors both lifted, this translated into upwards movement for both PCI values during the current month.

BNZ - BusinessNZ PCI Time Series

July 2014 – November 2017