BNZ – BusinessNZ
Performance of
Services Index

Consistent service – PSI

18 Jul, 2022
55.4
June
+0.1
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”.

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

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.

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

BNZ – BusinessNZ PSI Time Series

June 2018 – June 2022

International Results

J.P. Morgan Global Manufacturing PSITM

06 Jul 2022
53.9
Stephen Summers

Stephen Summers

Economist, BusinessNZ

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...

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).

In the black – PSI

After seven months in contraction, activity levels in New Zealand’s services sector saw expansion in March, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

BNZ – BusinessNZ
Performance of
Composite 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

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