BNZ – BusinessNZ
Performance of
Services Index

Brighter horizons – PSI

17 Jun, 2013

Service sector expansion for May continued a solid run of recent expansion, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for May was 56.2. This was identical to the result for April, and given both March and February stood at 55.7 this represents a very stable and healthy level of activity for the sector (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). Compared to previous May results, the 2013 value was the highest since the May 2007 value.

BusinessNZ chief executive Phil O’Reilly said that the healthy levels of activity, now evident for four consecutive months, is helping the sector follow a brighter path for growth than in recent years.

“However, it is important to point out that the first few months of 2012 started out in a similar fashion, but faded during the winter months. Time will tell whether other recent and positive economic indicators for the economy will lead to further expansion in the service sector.”

BNZ senior economist Craig Ebert said, “This is the strongest sustained growth pulse we’ve seen from New Zealand’s services sector since the economy began grinding its way out of recession back in 2009. No wonder the PSI jobs index is now turning clearly positive.”

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for May saw both options for measuring the PCI again increase. The GDP-Weighted Index (56.9) increased 0.6 points from April, while the Free-Weighted Index (58.2) rose 1.8 points over the same period. For the latter, it was at its highest level of overall activity since May 2007.

All five main sub-indices were in expansion during May. While new orders/business (59.5) and activity/sales (56.9) both exhibited a lower level of expansion from the previous month, employment (53.6) increased to its highest level of expansion since April 2012. Stock/inventories (53.7) went back into expansion after two consecutive months in contraction, while supplier deliveries (56.1) increased to its highest rate since June 2007.

Activity was again positive in three of the four regions during May. In the North Island, the Northern region (58.6) increased 3.2 points to its highest level of activity since November 2012. However, the Central region (53.2) fell back 5.2 points from April, but remained in expansion. In contrast, the Canterbury/Westland region (47.3) remained in contraction, while the Otago/Southland region (51.9) lifted 1.1 points from the previous month.

Click here to view the May 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 04 474 6799

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