Order up – PSI

18 Jun 2018

57.3

May

+0.9

Monthly Change

expanding

faster rate

View Kirk Hope's profile

Kirk Hope

Chief Executive, BusinessNZ

View profile

A lift in new orders/business contributed to New Zealand’s services sector experiencing a lift in expansion levels in May, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for May was 57.3, which was 0.9 points higher than April (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  It was also the second highest level of expansion for the last 11 months.

BusinessNZ chief executive Kirk Hope said that the last three months have shown healthy activity in the sector, and certainly up on activity for the three months prior.

“New orders/business (64.6) was at its highest level since January 2017, while the remaining sub-indices were all up from April.  Although the proportion of positive comments in May (58.0%) was down from April (65.1%), comments received took into account the boost in new business, with many outlining more bookings, increased capacity to work more hours and new client acquisitions".

BNZ Senior Economist Doug Steel said that "the positive signals in May from the PSI reinforce improvement we have seen in the index over recent months, following a somewhat weaker patch earlier in the year".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

A Lot to Like

There was a lot to like in May’s Performance of Services Index (PSI). First, the headline reading edged up to 57.3 from 56.4 in April. This indicates the service sector is not only expanding at a solid rate, but has even accelerated a little.
Read more

Q1 Dip Looks Temporary

The positive signals in May from the PSI reinforce improvement we have seen in the index over recent months following a somewhat weaker patch earlier in the year.
Read more

Mixed Signals

The current buoyancy in the PSI is in contrast to some other indicates like negative business confidence and wavering electronic card transactions over recent months.
Read more

Housing

REINZ data for May gave the sense that housing markets outside Auckland and Canterbury are showing better signs of resilience, having looked a bit equivocal on it over the last couple of months.
Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National IndiciesMay
2017
Jan
2018
Feb
2018
Mar
2018
Apr
2018
May
2018
BNZ - BusinessNZ PSI 58.155.955.158.656.457.3
Activity/Sales 62.459.453.764.756.658.1
Employment53.350.950.850.851.652.8
New Orders/Business62.259.560.863.761.564.6
Stocks/Inventories54.252.554.455.952.054.6
Supplier Deliveries54.854.154.655.751.853.5

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2012 – May 2018

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
5 Jun 2018

54.3

International PSI

BNZ - BusinessNZ PCI

57.0

GDP-Weighted Index

56.7

Free-Weighted Index

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) again saw the two options for measuring the PCI display contrasting results during May.

The May GDP-Weighted Index (57.0) increased 0.7 points from the previous month, while the Free-Weighted Index (56.7) decreased 0.2 points.  The increase in the former was influenced by an improvement in service sector expansion levels.

PCI Time Series Table

The results are seasonally adjusted.

National IndiciesMay
2017
Jan
2018
Feb
2018
Mar
2018
Apr
2018
May
2018
GDP-Weighted Index 58.155.855.057.556.357.0
Free-Weighted Index58.755.854.755.856.956.7

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2013 – May 2018

PCI Time Series Graph