BNZ – BusinessNZ
Performance of
Services Index

Healthy levels of business and sales means service sector remains in positive light – PSI

19 Sep, 2011

Continuing healthy levels of new business/orders and activity/sales kept the service sector in expansion for August, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for August was 53.9. This was down 0.6 points from 54.5 in July, but the highest August result since 2007. A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining.  The average PSI value for 2009 was 48.8, while for 2010 it was 53.2. So far for 2011, it is 52.8.

BusinessNZ Chief Executive Phil O’Reilly said that the August result was helped by ongoing solid results for new business and sales.

“Although employment and stocks showed contraction in August, new business and activity pulled through again with levels of expansion similar to both June and July. Also, it is pleasing to see that recent influences on business activity are constructive, with the proportion of positive comments left by respondents in August (58.8%) increasing significantly from July (50.0%),” he said.

“Looking ahead, time will tell whether the recent kick-off of the World Cup will help boost the service sector results further, particularly within the hospitality and tourism areas.”

BNZ Economist Craig Ebert says these are consistent with a range of other business surveys that have proved remarkably robust.

“It’s not just the latest PSI and PMI readings that give us encouragement through what has been another very difficult year – initially with the earthquakes and then globally,” Mr Ebert said.

The BNZ – BusinessNZ Performance of Composite Index (PCI), which combines the results of both the PSI and PMI, shows that both options for measurement lost further expansionary steam in August (53.7), which was also the first time both options produced the same value.

BNZ Economist Craig Ebert says these are consistent with a range of other business surveys that have proved remarkably robust.

“It’s not just the latest PSI and PMI readings that give us encouragement through what has been another very difficult year – initially with the earthquakes and then globally,” Mr Ebert said.

Three of the five sub-indices were in expansion during August, with new orders/business (58.7) producing its third consecutive value above 58. Activity/sales (57.0) also produced its third consecutive value above 57, while supplier deliveries (53.2) recorded its highest value since February 2008. Employment (49.2) improved from July but remained in contraction, while stocks/inventories (49.5) fell back into contraction after two months in expansion.

Activity was expansionary for three of the four main regions. This was led by the Northern region (57.4) which increased 3.9 points from July to record its highest result since September 2010. The Canterbury/Westland region (56.5) returned to expansion for August, while the Central region (55.9) continued to exhibit a stable period of activity that has now continued for four months. At the other end of the scale, the Otago/Southland region (36.9) collapsed from the July result to record its lowest level of activity since June 2008.

Click here to view the August 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 Craig Ebert 04 4746799

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.

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...

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