BNZ – BusinessNZ
Performance of
Services Index

In the groove – PSI

16 Nov, 2015
56.2
October
-2.8
expanding
slower rate

Despite a softer result in October, activity in New Zealand’s services sector continued to show expansion, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for October was 56.2.  This was 2.8 points lower than September, and similar to levels of activity experienced in July (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).

BusinessNZ chief executive Phil O’Reilly said that given the previous month was at near record highs, some reduction in the level of expansion was not a surprise. 

“The key indicators of activity/sales (57.6) and new orders/business (57.1) remain in healthy territory, and bodes well for a strong year for the sector”.

“The proportion of positive comments in October (61.8%) was slightly lower than September (65.8%), but still up on August (59.2%).  For those who stipulated positive influences, there were no clear patterns emerging, although many felt that conditions were ticking along as usual”.

BNZ Senior Economist Craig Ebert said that in relation to the sectors combined ” the PSI and PMI still give the impression of an economy growing at a comparatively solid pace at the outset of Q4, following a champing performance through Q3.”

BNZ - BusinessNZ PSI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PSI

Services Landscape

The PSI

New Zealand’s Performance of Services Index (PSI) struggled to hold the 7-year high of 59.0 it posted in September. However, with 56.2 in October it was still a very creditable performance.

Read more  

Labour Market

The 0.4% fall in the employment count in the Q3 Household Labour Force Survey was a surprise to all and sundry.

Read more  

Wholesaling

One of the even more encouraging components of the PSI of late, however, has been wholesaling. Its index reading for October was an unadjusted 64.6.

Read more  

Housing

The regional aspects to the local housing market are becoming important to take note of. There are signs that Auckland’s market might be cooling, at long last.

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 Oct
2014
Jun
2015
Jul
2015
Aug
2015
Sep
2015
Oct
2015
BNZ – BusinessNZ PSI 57.3 58.2 56.6 58.2 59.0 56.2
Activity/Sales 62.2 60.1 60.3 61.4 62.7 57.6
Employment 52.6 54.5 53.5 53.7 53.6 52.7
New Orders/Business 61.2 62.7 60.4 63.7 62.8 57.1
Stocks/Inventories 50.8 53.7 51.5 52.8 57.0 56.1
Supplier Deliveries 52.5 55.7 54.4 55.3 55.2 56.0

BNZ – BusinessNZ PSI Time Series

October 2011 – October 2015

International Results

J.P. Morgan Global Manufacturing PSITM

04 Nov 2015
53.7

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

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 both experience a lower level of expansion for October.

The GDP-Weighted Index (55.8) decreased 2.7 points, while the Free-Weighted Index (54.3) dropped 3.1 points. However, both results continued to remain higher than the J.P.Morgan Global Combined Index of 53.4 for the same month.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Oct
2014
Jun
2015
Jul
2015
Aug
2015
Sep
2015
Oct
2015
GDP-Weighted Index 57.5 57.8 56.1 57.8 58.5 55.8
Free-Weighted Index 57.7 57.2 55.7 57.0 57.4 54.3

BNZ – BusinessNZ PCI Time Series

October 2011 – October 2015

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