BNZ – BusinessNZ
Performance of
Services Index

Consistent performer – PSI

15 Apr, 2013

Service sector expansion for March was almost identical to the previous month, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for March was 55.4.  This was only 0.1 point down from the previous month, following a 2.5 point increase in February (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  Compared to previous March results, the 2013 value was the highest since 2010.

BusinessNZ chief executive Phil O’Reilly said that consecutive and consistent levels of healthy expansion in the service sector have been few and far between over the last few years, so the current result is encouraging.

“Like the main result, the proportion of positive comments from respondents (64.7%) was all but identical from last month.  Weather conditions dominated actual comments made, with many finding the fine weather a boost for activity.  However, others providing negative comments have outlined the drought as a constraint on growth.”

BNZ senior economist Craig Ebert said, “There are question marks about the sustainability of the recent housing market upswing. However, the recent hot spots likely helped the March PSI to its still-strong reading for March, via real estate, legal and financial services.”

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for March saw both options for measuring the PCI edge lower from February, but still in healthy territory.  The GDP-Weighted Index (55.2) decreased 0.2 points from February, while the Free-Weighted Index (54.4) fell 1.3 points over the same period.  Despite the dip, the last three months have shown a level of consistent expansion not seen since early 2010.

Four of the five main sub-indices were in expansion during March.  Again, leading the way was new orders/business (58.4), which has been fairly consistent over the last three months.  This was followed by activity/sales (57.3), while employment (53.3) recorded its second consecutive increase and highest result since April 2012.  Supplier deliveries (52.1) fell back 3.2 points, while stock/inventories (49.6) fell back to levels seen in December/January.

Activity was positive in three of the four regions during March.  In the North Island, the Northern region (57.2) rose a further 0.7 points.  However, the Central region (45.3) fell back into negative territory after two months of consistent levels of expansion.  In the South Island, the Canterbury/Westland region (58.7) displayed a similar level of expansion to the previous month, while the Otago/Southland region (62.3) also showed a close result to February.

Click here to view the March 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 04 496 6552 or 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