BNZ – BusinessNZ
Performance of
Services Index

Following international trends – PSI

17 May, 2021
61.2
April
+8.3

Monthly Change

expanding
faster rate

Like its sister survey the month before, activity in New Zealand’s services sector reached its highest level since the survey began in 2007, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for April was 61.2, which was up 8.3 points from March (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  It was the first time since June 2007 that the sector recorded a post-60 result.

BusinessNZ chief executive Kirk Hope said that the strong April result matches what is occurring across many countries we typically compare ourselves with.

“Australia, the UK and the USA are also posting post-60 results at present, which is indicative of the global economy slowly but surely getting back to some form of normality through increased business activity”.

BNZ Senior Economist Doug Steel said that “the Achilles heel of the PSI remains supplier deliveries.  Given supply issues obviously remain a significant issue for many, especially when viewed alongside very strong demand side indicators at present, it points to significant upwards pressure on prices”.

View the Time Series Data
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

Full service

The green shoots of recovery that appeared in NZ’s service sector in March blossomed into full-on growth in April. The Performance of Services Index (PSI) leapt to an all-time high of 61.2 from 52.9.
Read more

Growth signals positive

The PSI, along with last week’s above average PMI, points to a pick-up in economic growth. Even if Q1 GDP proves a bit soggy (as we think might be the case), following a clearly weak Q4, the composite PSI/PMI index for April suggests a decent bounce in Q2 is brewing.
Read more

Employment jumps

Amid the general PSI strength, the employment component stood out. Its 60.8 reading was a record – and by quite some margin with 56.2 being the previous high.
Read more

Supplies still troublesome

The Achilles heel of the PSI remains supplier deliveries. April’s 46.8 reading is better than March’s 44.2, but it is the 9th consecutive month in contractionary territory.
Read more

View full BNZ Services Snapshot
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.

View website

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Apr
2020		 Dec
2020		 Jan
2021		 Feb
2021		 Mar
2021		 Apr
2021
BNZ – BusinessNZ PSI 26.4 49.0 48.2 49.8 52.9 61.2
Activity/Sales 10.9 51.4 47.3 51.9 55.6 62.1
Employment 42.2 52.5 46.0 51.4 52.1 60.8
New Orders/Business 17.6 50.6 53.9 51.1 58.0 68.0
Stocks/Inventories 45.1 48.3 50.0 46.2 50.5 56.5
Supplier Deliveries 23.5 40.0 42.2 41.4 44.2 46.8
View the Time Series Data

BNZ – BusinessNZ PSI Time Series

April 2017 – April 2021

International Results

J.P. Morgan Global Manufacturing PSITM

05 May 2021
56.6

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

Lost momentum

New Zealand’s services sector fell back into contraction during March, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for March was 47.5 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

Path of expansion

New Zealand’s services sector continued its path of expansion in February, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for February was 53.0 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Green shoots?

New Zealand’s services sector climbed back into expansion for the start of 2024, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for January was 52.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

Activity on holiday

New Zealand’s services sector fell back into contraction during December, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for December was 48.8 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Over the line

New Zealand’s services sector recorded expansion in November, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for November was 51.2 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is...

View all PSI releases

BNZ – BusinessNZ
Performance of
Composite Index

60.6

GDP-Weighted Index

59.3

Free-Weighted 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 PCI log near or on record levels of activity for April.

The April GDP-Weighted Index (60.6) rose 6.3 points from March to record its highest ever result, while the Free-Weighted Index (59.3) increased 1.3 points to its highest level since July 2013.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Apr
2020		 Dec
2020		 Jan
2021		 Feb
2021		 Mar
2021		 Apr
2021
GDP-Weighted Index 26.6 49.2 49.7 50.6 54.3 60.6
Free-Weighted Index 24.8 49.5 53.3 52.6 58.0 59.3
View the Time Series Data

BNZ – BusinessNZ PCI Time Series

April 2017 – April 2021

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