Consistent service – PSI

18 Jul 2022

55.4

June

+0.1

Monthly Change

expanding

faster rate

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Kirk Hope

Chief Executive, BusinessNZ

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Activity levels for New Zealand's services sector in June displayed almost identical levels to last month, according to the BNZ - BusinessNZ Performance of Services Index (PSI).

The PSI for June was 55.4 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  This was up 0.1 point from May, and above the long-term average of 53.6 for the survey.

BusinessNZ chief executive Kirk Hope said that it was pleasing to see two consecutive months of healthy activity in the sector.  The fact that the two key sub-indexes of New Orders/Business (61.7) and Activity/Sales (56.5) remained at very healthy levels of expansion has more than compensated with other issues at play, such as supplier deliveries (47.8) still stuck in contraction.

Despite the consistent level of expansion with the previous month, the proportion of negative comments rose to 59% in June, compared with 50% in May and 61.9% in April.

BNZ Senior Economist Craig Ebert said that "the move to traffic light Orange in mid-April, along with the expedited opening of the border, is clearly providing a basis for sustained improvement in New Zealand’s services sector".

View the PSI Time Series Data


Main Indicies

Regional Results

Services Landscape

View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

PSI

By printing at 55.4 in June, the Performance of Services Index (PSI) showed that the jump in May to 55.3 was no flash in the pan, post the massive disturbance from Omicron earlier in the year.
Read more

Supply constraints

That said, not all would appear well in the services sector. By industry, Wholesaling (47.1), Transport & Storage (31.3) and Finance & Insurance (41.3) were going backwards.
Read more

QSBO as further insight

Meanwhile, complaints about supply chains, various costs (including fuel), and absenteeism, remained dominant in feedback to June’s PSI.
Read more

Growth implications

Patchy as it was, under its glowing surface, June’s PSI was nonetheless positive enough to counter claims the NZ economy is going into recession already.
Read more

View the BNZ Services Landscape

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Jun
2021
Feb
2022
Mar
2022
Apr
2022
May
2022
Jun
2022
BNZ - BusinessNZ PSI 56.0 48.9 52.0 52.3 55.3 55.4
Activity/Sales 60.5 50.9 53.7 53.0 59.4 56.5
Employment 55.6 44.6 49.1 51.3 49.0 53.1
New Orders/Business 62.2 54.7 59.1 55.9 62.0 61.7
Stocks/Inventories 49.7 50.8 53.0 55.2 54.7 54.1
Supplier Deliveries 42.5 33.9 41.5 41.3 45.6 47.8

View the PSI Time Series Data

BNZ - BusinessNZ PSI Time Series

January 2016 – June 2022

PSI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PSITM
6 Jul 2022

53.9

International PSI

BNZ - BusinessNZ PCI

54.6

GDP-Weighted Index

52.3

Free-Weighted Index

The seasonally adjusted BNZ - BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) saw both options for measuring the June PCI slip in expansion. 

The June GDP-Weighted Index (54.6) decreased 0.5 points from May, while the Free-Weighted Index (52.3) fell 2.4 points.

PCI Time Series Table

The results are seasonally adjusted.

National IndicesJun
2021
Feb
2022
Mar
2022
Apr
2022
May
2022
Jun
2022
GDP-Weighted Index 56.449.451.951.155.154.6
Free-Weighted Index58.451.652.050.854.752.3

View the PCI Time Series Data

BNZ - BusinessNZ PCI Time Series

January 2016 – June 2022

PCI Time Series Graph