BNZ – BusinessNZ
Performance of
Services Index

August sees small service sector improvement – PSI

20 Sep, 2010

Service sector activity improved slightly in August, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for August was 51.4. This was up 1.0 point from July, and the second highest August result since the survey began (although well off the peak of 58.4 in 2007). A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining. The average PSI value for 2008 was 49.1, while for 2009 it was 48.8. So far, the average score for 2010 is 53.6.

BusinessNZ chief executive Phil O’Reilly said that while the small pick-up was positive, it still displays the patchiness of the New Zealand economy at present. It also remains to be seen how recent events will cause strain on any further improvement.

“August results for the Canterbury/Westland area were obviously collected for the period before the earthquake. However, results over the next few months may not be as favourable. While comments from manufacturers in that region indicate many have been relatively unscathed by events, many in the service sector may not be as fortunate.

BNZ senior economist Craig Ebert said that if New Zealand’s manufacturing sector is jogging on the spot, the services sector is doing doggy paddle.

“While August’s results are only a slight improvement on July’s, the sector is still keeping its head above water in a situation that could be worse, given last week’s stalling PMI and even weaker new orders. This sector’s new orders remain on the right side of 50, the employment index remained positive, and consumer confidence is holding up rather well – all reassuring stuff when fears of double-dips abound.”

Three of the five sub-indices were still in expansion mode in August. Both new orders/business and activity/sales experienced the same level of expansion during August (53.9), with the former unchanged from July, and the later increasing 3.6 points. Employment (51.8) nudged up slightly after a drop in July, while supplier deliveries (47.1) saw a slight dip compared with the previous month. Stocks/inventories (46.5) fell back to a level almost identical with August 2009.

Unadjusted activity was again mainly negative throughout the country. The Northern region (54.3) was again the only one to show expansion for August, up 3.4 points from July. The Central region (49.7) recovered after a sizeable decrease in July. In the South Island, both the Canterbury/Westland (46.4) and Otago/Southland (47.2) regions experienced similar levels of decline, although both showed some improvement from July.

Click here to view the August PSI & PCI
Click here to view the PSI time series data
Click here to view the PCI time series data

For media comment: Craig Ebert 04 4746799

BNZ - BusinessNZ PSI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PSI

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.

PSI Time Series Table

The results are seasonally adjusted.

BNZ – BusinessNZ PSI Time Series

January 1966 – January 1970

International Results

J.P. Morgan Global Manufacturing PSITM

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.

PSI Releases

Uplift – PSI

Expansion levels for New Zealand's services sector saw a sizeable uplift in August, according to the BNZ - BusinessNZ Performance of Services Index (PSI).The PSI for August was 58.6 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

Easing off – PSI

Expansion levels for New Zealand's services sector decreased in July, according to the BNZ - BusinessNZ Performance of Services Index (PSI).The PSI for July was 51.2 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it...

Consistent service – PSI

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).

Upwards momentum – PSI

Activity levels in New Zealand’s services sector displayed upwards momentum during May, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

Evening out – PSI

Activity levels in New Zealand’s services sector during April were almost identical to March, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

BNZ – BusinessNZ
Performance of
Composite Index

PCI Time Series Table

The results are seasonally adjusted.

BNZ – BusinessNZ PCI Time Series

January 1966 – January 1970

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