BNZ – BusinessNZ
Performance of
Services Index

Easing off – PSI

15 Aug, 2022
51.2
July
-3.5
expanding
slower rate

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 is declining).  This was down 3.5 points from June, and the lowest level of activity since February 2022.  It was also below the long-term average of 53.6 for the survey.

BusinessNZ chief executive Kirk Hope said that after two consecutive months of healthy activity in the sector, the fall in expansion levels was evident across all the sub index values.  The two key sub-indexes of New Orders/Business (52.5) and Activity/Sales (54.4) both dropped, with the former down from consecutive 60+ values.  Employment (49.2) fell back into contraction, while Supplier Deliveries (47.3) has remained in contraction since July 2020.    

Despite the drop in expansion with the previous month, the proportion of negative comments in July (58.2%) was relatively close to 59% in June.

BNZ Senior Economist Doug Steel said that “it is difficult to be sure from one month’s data, but July’s outcome is the lowest since February, has retreated further from the recent 54.9 peak set in May, and is back below average.”

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

The Performance of Services Index (PSI) stepped back to 51.2 in July from June’s 54.7. It gives the sense that the strong bounce in service sector performance, following the move to the Orange setting on the Covid traffic light system in mid-April, might be running out of steam.

Read more

Details Underwhelming

On the plus side, the PSI is still above 50 indicating some growth is occurring. However, it is at a slower pace than immediately post the move to the Orange setting.

Read more

Employment

Combining the PSI results to last week’s ok-looking PMI, the composite (PCI) suggests economic expansion continued into Q3 albeit at a slower pace than seems to have occurred in Q2.

Read more

North to South

The unadjusted PSI results for July saw a stark difference across regions – much stronger in the South while weaker in the North – as has been the picture over recent months.

Read more

Doug Steel

Doug Steel

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 Jul 2021 Mar 2022 Apr 2022 May 2022 Jun 2022 Jul 2022
BNZ – BusinessNZ PSI 55.3 52.2 52.0 54.9 54.7 51.2
Activity/Sales 61.3 54.1 53.0 59.2 55.8 54.4
Employment 54.8 49.2 51.3 48.8 52.7 49.2
New Orders/Business 58.7 59.8 55.2 61.6 60.5 52.5
Stocks/Inventories 50.8 53.0 55.2 54.6 54.0 53.1
Supplier Deliveries 45.2 41.6 41.5 45.8 48.4 47.3

BNZ – BusinessNZ PSI Time Series

July 2018 – July 2022

International Results

J.P. Morgan Global Manufacturing PSITM

03 Aug 2022
51.1
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;...

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).

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 the two options for measuring the July PCI show opposite movements from June.

The July GDP-Weighted Index (53.8) decreased 0.3 points from June, while the Free-Weighted Index (53.8) increased 1.5 points.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Jul 2021 Mar 2022 Apr 2022 May 2022 Jun 2022 Jul 2022
GDP-Weighted Index 58.2 52.0 50.5 54.7 54.1 53.8
Free-Weighted Index 60.4 51.9 50.9 54.7 52.3 53.8

BNZ – BusinessNZ PCI Time Series

July 2018 – July 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