Onwards and upwards – PSI 19 Jul 2021 58.6June+2.3Monthly Changeexpandingfaster rate Kirk Hope Chief Executive, BusinessNZ View profile New Zealand's services sector was in expansion mode for the fourth consecutive month, according to the BNZ - BusinessNZ Performance of Services Index (PSI).The PSI for June was 58.6 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). This was 2.3 points up from May, but still below its highest ever result of 61.1 in April.BusinessNZ chief executive Kirk Hope said that the sector experienced a boost in expansion after a lift in the key sub-indices of Activity/Sales (62.5) and New Orders/Business (66.1)."While the key indicators show very healthy expansion, comments from respondents were very similar to its sister survey the PMI, highlighting staff/skills shortages and general logistics issues."BNZ Senior Economist Craig Ebert said that "combined, the PSI and PMI signal a hefty rate of growth in economic activity – in the realm of a 4% annual rate of growth in GDP. At one level, this is very encouraging. At another, it suggests the economy is running headlong into even-worse capacity constraint, and, with it, serious inflation pressure." View the PSI Time Series Data Main Indicies Regional Results Craig EbertSenior Economist, BNZ The PSIIn the space of three months, the Performance of Services Index (PSI) has gone from indicating scant growth to rapid expansion. In printing at 58.6 in June, the PSI established a June quarter average of 58.7. This compares to the average over the March quarter of 50.2.Read moreEmployment plusCertainly, much of the negatively headed feedback to the PSI survey in June related to ongoing problems with supplies, including increased lead times. Complaints also resonated regarding the scarcity of staff, with the closed borders partly to blame.Read moreIndustry featuresWhile the PSI is riding high overall, there is still interesting variability in its detail. Two of the strongest industries in June, for instance, were Property & Business (57.3) and Finance & Insurance (55.0).Read moreGDP inferencesBut, really, it’s the now very strong force of the PSI, overall, that’s the important thing to note. Even stronger in June, of course, was the Performance of Manufacturing Index (PMI), which hit 60.7.Read more View the BNZ Services Landscape PSI Time Series TableThe results are seasonally adjusted. National IndiciesJun2020Feb2021Mar2021Apr2021May2021Jun2021 BNZ - BusinessNZ PSI 54.849.753.061.156.358.6 Activity/Sales 58.951.855.862.059.062.5 Employment45.551.452.260.954.556.5 New Orders/Business61.149.858.667.162.766.1 Stocks/Inventories51.850.150.655.051.450.9 Supplier Deliveries53.242.344.447.045.246.2 View the PSI Time Series Data BNZ - BusinessNZ PSI Time Series January 2016 – June 2021 International ResultsJ.P. Morgan Global Manufacturing PSITM 7 Jul 202157.5 59.1GDP-Weighted Index60.3Free-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 show higher levels of expansion for June.The June GDP-Weighted Index (59.1) increased 2.0 points from May, while the Free-Weighted Index (60.3) rose 2.5 points. PCI Time Series TableThe results are seasonally adjusted. National IndicesJun2020Feb2021Mar2021Apr2021May2021Jun2021 GDP-Weighted Index 55.350.454.359.857.159.1 Free-Weighted Index56.452.157.859.057.860.3 View the PCI Time Series Data BNZ - BusinessNZ PCI Time Series January 2016 – June 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 Craig Ebert, 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