BNZ – BusinessNZ
Performance of
Services Index

Easing of expansion continues in service sector – PSI

20 Aug, 2012

Expansion levels for the service sector dipped for the second consecutive month, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for July was 53.1. This was down 0.8 points from June, although not as strong as the 2.5 point fall for the previous month (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). Compared to previous June results, the 2012 value was almost identical to 2011, but up on 2010.

BusinessNZ chief executive Phil O’Reilly said that the chipping away of expansion in the service sector is also evident in the comments received from respondents.

“Compared with June where comments were more positive than negative, July has seen this even up considerably. Either a slowness or lack of sales/orders is top of mind for many finding business conditions difficult at present. For those finding activity positive, a much broader range of comments is evident, although there is little in the way of common themes to indicate improved activity in the months ahead.

BNZ economist Doug Steel said that the lack of common themes in either PSI respondent comments or in the PSI data was in keeping with other economic data of late.

“It has been all over the show. For every indicator pointing one way there seems to be another one pointing in another direction. At least, on average, the indicators point to moderate growth ahead.”

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for July showed the two options for measuring the PCI again both down from June, as an easing in both the manufacturing and service sector results reduced combined activity. The GDP-Weighted Index (52.7) decreased another 0.6 points from June, although not as strong as the 2.9 point fall in June when the service sector took a greater hit in terms of activity. The Free-Weighted Index (51.3) also decreased 0.6 points, resembling levels of activity during November/December last year.

Despite another dip in expansion levels, all five sub-indices remained in expansion during July. New orders/business (58.8) continued to lead for the 22nd consecutive month, and recovered some lost ground from the June result. Activity/sales (52.3) slipped a further 1.9 points from June after slipping 3.6 points from May. Employment (52.5) and stocks/inventories (51.5) recorded an almost identical result to June, while supplier deliveries (50.3) moved closer to the no change mark.

Unadjusted activity was again expansionary for three of the four regions. In the North Island, the Northern region (50.7) experienced its lowest level of activity since the start of 2012, while the Central region (55.5) improved slightly on its June result. In the South Island, the Canterbury/Westland region (53.4) continued to see-saw within the 50-60 point mark, while the Otago/Southland region (48.3) improved from June, but experienced its third consecutive month in decline.

Click here to view the July 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.

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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