BNZ – BusinessNZ
Performance of
Services Index

Cold snap – PSI

16 Jun, 2014

Expansion in the services sector eased back during May, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for May was 54.2. This was down 4.3 points from April, although still showing higher expansion than the February result (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). The PSI has averaged 56.4 points so far for 2014.

BusinessNZ chief executive Phil O’Reilly said that easing expansion levels should not undermine the fact that the sector is still in positive territory.

“While sales activity was not as solid as the previous month, new orders/business remained strong, which was a consistent theme in the type of positive comments received from respondents. On the flip side, negative comments did not display any strong trend, apart from typical seasonal/weather related issues this time of year”.

“Overall, given the fact that nearly 60% of comments received were along a positive line confirms the sector remains in good heart”.

BNZ Economist Doug Steel said the service sector was part of likely above-trend economic growth in Q1 this year and the PSI suggests more of the same in Q2, despite easing in May.

Despite the dip in expansion levels, four of the five main sub-indices were still in expansion during May. New orders/business (60.6) reduced 5.5 points from April, but remained in strong territory for expansion. Activity/sales (54.3) slipped 7.2 points to record its lowest result since January 2013. Employment (52.4) continued to edge downwards, while stocks/inventories (53.1) fell 2.6 points. Supplier deliveries (49.5) went into slight contraction for the first time since January.

Activity remained positive throughout the country. In the North Island, the Northern region (55.5) reverted back to levels seen in August 2013, while the Central region (51.2) fell back after three consecutive months of solid results. In the South Island, the Canterbury/Westland region (54.5) remained in positive territory despite easing expansion, while the Otago/Southland region (51.3) managed to keep its head above water with minor expansion.

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for May saw the two options for measuring the PCI both ease from the previous month, although they remain in expansion. The GDP-Weighted Index (54.0) decreased 4 points the previous month, while the Free-Weighted Index (54.3) dipped 2.7 points.

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: Phil O’Reilly 04 4966552 or Doug Steel 04 474 6923

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