BNZ – BusinessNZ
Performance of
Services Index

Challenging times – PSI

18 Oct, 2021
46.9
September
+11.5

Monthly Change

contracting
slower rate

New Zealand’s services sector remained in contraction during September, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for September was 46.9 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  This was up 11.5 points from August as the country moved down alert levels during September, freeing up some businesses for increased activity.

BusinessNZ chief executive Kirk Hope said that despite the improvement in the overall result for September, current restrictions still mean business as usual for most of the country is still a ways off yet.

“COVID-19 and its associated lockdown/restrictions still completely dominate comments from respondents, while the key sub-indexes of Activity/Sales (45.3) and New Orders/Business (47.5) remain in contraction.  At what point the PSI returns to expansion will largely depend on any upcoming changes to alert levels in the weeks ahead.”

BNZ Senior Economist Doug Steel said that “subdued new orders warn against expecting too much of a bounce in coming months. Of course, the spread of COVID, vaccination rates, and any restriction changes will have a very large bearing on that.”

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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

Doing it tough

Not surprisingly, New Zealand’s service sector continues to show substantial pain as COVID alert level restrictions linger. The pain is by no means uniform across various segments but is all too obvious in the headline figures.
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Reality versus expectations

Today’s below average PSI also contrasts with other surveys that often ask about expectations or general confidence (which seem to be holding up ok). The PSI is a survey of outcomes and thus reflects the difficult trading conditions that many have encountered.
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Much variation

Unadjusted PSI readings show very large variations across various segments. By industry, Accommodation, Cafes & Restaurants, Cultural, Recreational & Personal, and Retail Trade saw the weakest readings in September.
Read more

Employment robust

The key positive in September’s PSI is employment, lifting to an above average 52.0 from August’s 49.3. This seems consistent with firms expecting activity to bounce once restrictions are eased, fiscal support from government, and a reluctance to let staff go.
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.

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PSI Time Series Table

The results are seasonally adjusted.

National Indicies Sep
2020		 May
2021		 Jun
2021		 Jul
2021		 Aug
2021		 Sep
2021
BNZ – BusinessNZ PSI 50.2 56.0 57.4 55.2 35.4 46.9
Activity/Sales 54.7 58.2 60.9 60.1 25.5 45.3
Employment 49.7 54.3 56.2 54.4 49.3 52.0
New Orders/Business 54.9 62.6 64.3 59.2 32.3 47.5
Stocks/Inventories 45.2 51.2 50.6 51.4 48.0 51.5
Supplier Deliveries 43.5 45.2 45.7 46.5 26.7 42.1
View the Time Series Data

BNZ – BusinessNZ PSI Time Series

September 2017 – September 2021

International Results

J.P. Morgan Global Manufacturing PSITM

05 Oct 2021
53.4

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

47.5

GDP-Weighted Index

49.0

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 September PCI both improve, although still stuck in contraction.

The September GDP-Weighted Index (47.5) increased 11.5 points from August, while the Free-Weighted Index (49.0) also rose 11.5 points.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Sep
2020		 May
2021		 Jun
2021		 Jul
2021		 Aug
2021		 Sep
2021
GDP-Weighted Index 50.7 56.9 57.9 55.7 36.0 47.5
Free-Weighted Index 52.2 58.2 59.1 60.3 37.5 49.0
View the Time Series Data

BNZ – BusinessNZ PCI Time Series

September 2017 – September 2021

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