Following international trends – PSI 17 May 2021 61.2April+8.3Monthly Changeexpandingfaster rate Kirk Hope Chief Executive, BusinessNZ View profile Like its sister survey the month before, activity in New Zealand’s services sector reached its highest level since the survey began in 2007, according to the BNZ - BusinessNZ Performance of Services Index (PSI).The PSI for April was 61.2, which was up 8.3 points from March (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). It was the first time since June 2007 that the sector recorded a post-60 result.BusinessNZ chief executive Kirk Hope said that the strong April result matches what is occurring across many countries we typically compare ourselves with."Australia, the UK and the USA are also posting post-60 results at present, which is indicative of the global economy slowly but surely getting back to some form of normality through increased business activity".BNZ Senior Economist Doug Steel said that "the Achilles heel of the PSI remains supplier deliveries. Given supply issues obviously remain a significant issue for many, especially when viewed alongside very strong demand side indicators at present, it points to significant upwards pressure on prices". View the PSI Time Series Data Main Indicies Regional Results Doug SteelSenior Economist, BNZ Full serviceThe green shoots of recovery that appeared in NZ’s service sector in March blossomed into full-on growth in April. The Performance of Services Index (PSI) leapt to an all-time high of 61.2 from 52.9.Read moreGrowth signals positiveThe PSI, along with last week’s above average PMI, points to a pick-up in economic growth. Even if Q1 GDP proves a bit soggy (as we think might be the case), following a clearly weak Q4, the composite PSI/PMI index for April suggests a decent bounce in Q2 is brewing.Read moreEmployment jumpsAmid the general PSI strength, the employment component stood out. Its 60.8 reading was a record – and by quite some margin with 56.2 being the previous high.Read moreSupplies still troublesomeThe Achilles heel of the PSI remains supplier deliveries. April’s 46.8 reading is better than March’s 44.2, but it is the 9th consecutive month in contractionary territory.Read more View the BNZ Services Landscape PSI Time Series TableThe results are seasonally adjusted. National IndiciesApr2020Dec2020Jan2021Feb2021Mar2021Apr2021 BNZ - BusinessNZ PSI 26.449.048.249.852.961.2 Activity/Sales 10.951.447.351.955.662.1 Employment42.252.546.051.452.160.8 New Orders/Business17.650.653.951.158.068.0 Stocks/Inventories45.148.350.046.250.556.5 Supplier Deliveries23.540.042.241.444.246.8 View the PSI Time Series Data BNZ - BusinessNZ PSI Time Series January 2016 – April 2021 International ResultsJ.P. Morgan Global Manufacturing PSITM 5 May 202156.6 60.6GDP-Weighted Index59.3Free-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 log near or on record levels of activity for April.The April GDP-Weighted Index (60.6) rose 6.3 points from March to record its highest ever result, while the Free-Weighted Index (59.3) increased 1.3 points to its highest level since July 2013. PCI Time Series TableThe results are seasonally adjusted. National IndicesApr2020Dec2020Jan2021Feb2021Mar2021Apr2021 GDP-Weighted Index 26.649.249.750.654.360.6 Free-Weighted Index24.849.553.352.658.059.3 View the PCI Time Series Data BNZ - BusinessNZ PCI Time Series January 2016 – April 2021 In this section Surveys & Statistics Performance of Manufacturing Index Performance of Services Index Compliance Cost Survey Exporters Survey Southern Cross Health Society - BusinessNZ Wellness in the Workplace Survey Reports & Publications BusinessNZ Planning Forecast International BusinessNZ RAT Suppliers Guides & Tools BusinessNZ RAT Suppliers RATs for non-critical business, agencies and organisations BNZ - BusinessNZ PSI Time Series Data View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PSI BNZ - BusinessNZ PCI Time Series Data View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ combined PMI & PSI. 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 Media Comment For media comment, please contact: Kirk Hope, 04 496 6560 Doug Steel, BNZ 04 474 6799 Technical Comment For more information or assistance with data interpretation, please contact: Steve Summers 04 496 6564 ssummers@businessnz.org.nz Our ContributorsThe BNZ - BusinessNZ PSI contains data obtained through BusinessNZ's regional organisations About the PSIThe 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.About the PCIThe 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. Related Articles RMA shakeup long overdue Softening in September – PSI Spring is in the air Smooth operator – PSI Easing expansion – PSI View more