BNZ – BusinessNZ
Performance of
Services Index

New business lifts services – PSI

16 Nov, 2020
51.4
October
+1.0

Monthly Change

expanding
faster rate

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

The PSI for October was 51.4, which was up 1 point from September (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 overall small lift in expansion was positive, the sub-indices that make up the main result were mixed.

“New Orders/Business (58.4) lifted to its highest result since June, along with Stocks/Inventories (51.7) returning to expansion since July.  However, Employment (49.5) remains in contraction for the 8th consecutive month, while Production (49.9) fell back down under the 50.0 mark”.

BNZ Senior Economist Craig Ebert said that “October’s PSI was still shy of its historical average of 54.0.  This was perhaps more disappointing than was the case for the PMI as the service sectors should arguably have been exhibiting a stronger rebound.”

Kirk Hope

Kirk Hope

CEO, BusinessNZ

BNZ - BusinessNZ PSI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PSI

Services Landscape

The PSI

Much like the Performance of Manufacturing Index (PMI) for October, the Performance of Services Index (PSI) warned about not over-forecasting the economic recovery that is broadly underway.
Read more

Diverging Details

That said, the PSI details in October were a little different to those of the PMI. For instance, the PSI New Orders/Business index, which strengthened to 58.4, was counter to the fall we saw in the PMI’s, to 52.4.
Read more

GDP Scoping

With today’s PSI, and last Friday’s PMI, we can check in with what they are inferring with respect to overall economic growth. As it happens, they broadly align with our latest thinking on GDP.
Read more

The World’s Woes?

Of course, New Zealand’s economic activity has already been compromised by the effective closing of borders to people. And even though the nation is otherwise open to international trade, there is still the issue of how the world economy is going out there.
Read more

Craig Ebert

Craig Ebert

Senior Economist, BNZ

Sponsor Statement

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.

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Oct
2019
Jun
2020
Jul
2020
Aug
2020
Sep
2020
Oct
2020
BNZ – BusinessNZ PSI 54.0 54.5 54.3 47.3 50.4 51.4
Activity/Sales 56.2 59.0 55.4 45.4 52.3 49.9
Employment 50.8 45.7 49.5 47.6 48.9 49.5
New Orders/Business 59.3 60.0 55.7 47.9 55.5 58.4
Stocks/Inventories 50.6 52.4 56.0 49.3 44.2 51.7
Supplier Deliveries 48.9 53.3 56.9 45.3 43.2 44.2

BNZ – BusinessNZ PSI Time Series

October 2016 – October 2020

International Results

J.P. Morgan Global Manufacturing PSITM

04 Nov 2020
52.9

About the PSI

The 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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PSI Releases

Path of expansion

New Zealand’s services sector continued its path of expansion in February, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for February was 53.0 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Green shoots?

New Zealand’s services sector climbed back into expansion for the start of 2024, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for January was 52.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

Activity on holiday

New Zealand’s services sector fell back into contraction during December, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for December was 48.8 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Over the line

New Zealand’s services sector recorded expansion in November, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for November was 51.2 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is...

Lost momentum

New Zealand’s services sector went back into contraction in October, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for October was 48.9 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

BNZ – BusinessNZ
Performance of
Composite Index

51.4

GDP-Weighted Index

51.9

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 mixed results during October, although both remained in expansion.

The October GDP-Weighted Index (51.4) rose 0.5 points from September, while the Free-Weighted Index (51.9) decreased 0.4 points.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Oct
2019
Jun
2020
Jul
2020
Aug
2020
Sep
2020
Oct
2020
GDP-Weighted Index 53.7 54.7 55.0 47.8 50.9 51.4
Free-Weighted Index 53.3 56.2 57.0 49.1 52.3 51.9

BNZ – BusinessNZ PCI Time Series

October 2016 – October 2020

About the PCI

The 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.

BNZ - BusinessNZ PCI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PCI

Our Contributors

The BNZ – BusinessNZ PSI contains data obtained through BusinessNZ’s regional organisations