In the zone – PSI

16 Aug 2021

57.9

July

-0.5

Monthly Change

expanding

slower rate

View Kirk Hope's profile

Kirk Hope

Chief Executive, BusinessNZ

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New Zealand's services sector remained in expansion mode for the fifth consecutive month, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for July was 57.9 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  While this was down from 58.4 in June, it was still well above the overall average of 53.9 for the survey.

BusinessNZ chief executive Kirk Hope said that the sector will continue to show above average results as long as the key sub-indices of Activity/Sales (63.6) and New Orders/Business (63.2) remain strong.  The one sub-index that remains in contraction is Supplier Deliveries (47.6), although the July result is at its highest level since July 2020.

BNZ Senior Economist Doug Steel said that "combined with last week’s blistering PMI employment reading of 58.3, it all sets up Q3 to be another strong quarter of employment growth and the nation’s unemployment rate continuing to press lower. This is good news if you are looking for a job, not so much if you are trying to find staff."

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

High demand

New Zealand’s service sector continues to expand at a rapid pace. The Performance of Services Index (PSI) stood at 57.9 in July. That’s not too different from June’s 58.4.
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Navigating challenges

The overall strength in the PSI is quite remarkable given that many respondents continue to highlight significant, and ongoing, issues on the supply side. Shipping delays, freight cost escalation, and raw material shortages continue to be commonly cited.
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General buoyancy

Notwithstanding supply side challenges, looking across the PSI by industry (and by region and by firm size) nearly all recorded PSI readings above 50 (unadjusted) indicating a general buoyancy across the service sector.
Read more

Good for jobs

Another positive in July’s PSI was the employment index at 55.2. Yes, it was a touch lower than June’s 56.5 but still significantly above its long-term norm of 51.4.
Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National IndiciesJul
2020
Mar
2021
Apr
2021
May
2021
Jun
2021
Jul
2021
BNZ - BusinessNZ PSI 54.553.161.156.158.457.9
Activity/Sales 55.055.862.158.962.463.6
Employment49.952.260.954.356.555.2
New Orders/Business56.358.667.262.365.463.2
Stocks/Inventories55.550.755.151.450.952.0
Supplier Deliveries56.844.447.045.346.447.6

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

July 2014 – July 2021

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
4 Aug 2021

56.3

International PSI

BNZ - BusinessNZ PCI

58.6

GDP-Weighted Index

60.8

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 July PCI both show similar levels of expansion to June.

The July GDP-Weighted Index (58.6) decreased 0.2 points from June, while the Free-Weighted Index (60.8) rose 0.5 points.

PCI Time Series Table

The results are seasonally adjusted.

National IndicesJul
2020
Mar
2021
Apr
2021
May
2021
Jun
2021
Jul
2021
GDP-Weighted Index 55.254.360.056.758.858.6
Free-Weighted Index56.957.959.157.760.360.8

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

July 2014 – July 2021

PCI Time Series Graph