BNZ – BusinessNZ
Performance of
Services Index

Consistent service – PSI

18 Jul, 2022
55.4
June
+0.1

Monthly Change

expanding
faster rate

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”.

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Kirk Hope

Kirk Hope

CEO, BusinessNZ

BNZ - BusinessNZ PSI

Time Series Data

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

Services Landscape

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 full BNZ Services Snapshot
Craig Ebert

Craig Ebert

Senior Economist, BNZ

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.

View website

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
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BNZ – BusinessNZ PSI Time Series

June 2018 – June 2022

International Results

J.P. Morgan Global Manufacturing PSITM

06 Jul 2022
53.9

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PSI Releases

Slow crawl

Activity in New Zealand’s services sector inched its way higher during August, although still firmly in contraction territory, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for August was 45.5 (A PSI reading above 50.0 indicates that...

Relative progress

Activity in New Zealand’s services sector for July showed some improvement after a horrendous June result, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for July was 44.6 (A PSI reading above 50.0 indicates that the service sector is...

Sinking

Activity in New Zealand’s services sector sunk even further during June, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for June was 40.2 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0...

Bottom of the Barrel

Activity in New Zealand’s services sector dropped to its lowest level of activity for a non-COVID lockdown month since the survey began, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for May was 43.0 (A PSI reading above 50.0 indicates...

Struggle street

New Zealand’s services sector continued to contract further in April, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for April was 47.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

View all PSI releases

BNZ – BusinessNZ
Performance of
Composite Index

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 Indices Jun
2021		 Feb
2022		 Mar
2022		 Apr
2022		 May
2022		 Jun
2022
GDP-Weighted Index 56.4 49.4 51.9 51.1 55.1 54.6
Free-Weighted Index 58.4 51.6 52.0 50.8 54.7 52.3
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BNZ – BusinessNZ PCI Time Series

June 2018 – June 2022

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