BNZ – BusinessNZ
Performance of
Services Index

Steady service – PSI

17 Aug, 2020
54.3
July
+0.0

Monthly Change

expanding
same rate

Activity in New Zealand’s services sector remained at the same expansionary level since last month, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for July was 54.3, which was the same as June (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 the solid result for July builds on the return to expansion in June, although possible headwinds with recent COVID-19 community transmission may impact the results ahead.

BusinessNZ chief executive Kirk Hope said that the solid result for July builds on the return to expansion in June, although possible headwinds with recent COVID-19 community transmission may impact the results ahead.

“Comments from those in the services sector still place COVID-19 front and centre in terms of negative influences, with recovery comments a key feature of positive influences.  With uncertainty ahead, we need to take results month by month.

BNZ Senior Economist Craig Ebert said that “even if the current restrictions don’t last a lot longer, they will surely knock the PSI for August. And not just from business shutdown impacts but also via bruised economic confidence more generally”.

View the Time Series Data
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

PSI

For the second month in a row, the Performance of Services Index (PSI) posted a “normal” reading in July. Normal in the sense that its 54.3 was very close to its long-term average, at least. But, of course, these are not normal times.
Read more

Regional and Industry

The regional aspects to the latest lockdowns will make the next PSI insightful for its geographical aspects too.
Read more

Employment

Arguably the best news in July’s PSI was its employment indicator. This might sound like a strange claim when, at 49.7, it was still on the wrong side of 50. But for it to be so close to stability, when economic activity has taken such a hit, is relatively encouraging.
Read more

Global

While the NZ PSI is facing stiff headwinds for the meantime, it has at least managed to reinstate its claim as a world beater.
Read more

View full BNZ Services Snapshot
Doug Steel

Doug Steel

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.

View website

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Jul
2019		 Mar
2020		 Apr
2020		 May
2020		 Jun
2020		 Jul
2020
BNZ – BusinessNZ PSI 54.5 36.3 26.0 37.1 54.3 54.3
Activity/Sales 56.3 29.7 10.8 33.2 58.3 54.4
Employment 52.1 46.2 41.9 40.2 45.1 49.7
New Orders/Business 57.7 32.4 16.6 36.0 59.5 55.4
Stocks/Inventories 54.1 46.0 45.9 46.6 52.3 55.7
Supplier Deliveries 48.4 34.0 24.9 40.9 53.1 56.6
View the Time Series Data

BNZ – BusinessNZ PSI Time Series

July 2016 – July 2020

International Results

J.P. Morgan Global Manufacturing PSITM

05 Aug 2020
50.8

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

Lost momentum

New Zealand’s services sector fell back into contraction during March, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for March was 47.5 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

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...

View all PSI releases

BNZ – BusinessNZ
Performance of
Composite Index

55.0

GDP-Weighted Index

57.0

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 a slight rise in expansion for July.

The July GDP-Weighted Index (55.0) increased 0.5 points from June, while the Free-Weighted Index (57.0) rose 1.0 point.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Jul
2019		 Mar
2020		 Apr
2020		 May
2020		 Jun
2020		 Jul
2020
GDP-Weighted Index 53.8 36.4 25.8 37.5 54.5 55.0
Free-Weighted Index 51.9 36.5 24.1 38.0 56.0 57.0
View the Time Series Data

BNZ – BusinessNZ PCI Time Series

July 2016 – July 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