BNZ – BusinessNZ
Performance of
Services Index

In the zone – PSI

17 Aug, 2015
56.5
July
-1.6
expanding
slower rate

New Zealand’s services sector remained in the zone of healthy expansion, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for July was 56.5. Although this was 1.6 points lower than June, it continued a noteable stretch of expansion in the sector between the 56-58 mark (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 the PSI for July displayed the fundamentals of continuing growth, which is encouraging given a number of headwinds within the New Zealand economy at present.

“The proportion of positive comments in July (64.1%) was up on June, with respondents outlining new business/orders and product development as key ingredients for influences on activity. To a lesser extent, the recent fall in the value of the New Zealand dollar has also assisted expansion”.

BNZ Senior Economist Doug Steel said while lower dairy prices and flattening residential building activity would likely slow NZ’s economic growth over time, the latest solid readings from the service and manufacturing sectors shows there were still other factors driving decent growth in the meantime.

BNZ - BusinessNZ PSI

Time Series Data

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

Services Landscape

Services Add To Manufacturing Growth

The Performance of Services Index (PSI) maintained a solid growth pulse in July.
Read more  

Spending Up

Electronic card transactions proved quite strong in July. Total transactions were up 6.8% on a year ago.
Read more  

Accommodation

International visitor arrivals continue to significantly outnumber year earlier levels. Mid-year figures show visitor numbers are up around 9% on a year ago.
Read more  

Construction and housing

Some lead indicators for house construction have cooled over recent months with a flattening in the number of residential building consents.
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 July
2014
Mar
2015
Apr
2015
May
2015
Jun
2015
Jul
2015
BNZ – BusinessNZ PSI 58.4 57.6 56.7 57.9 58.1 56.5
Activity/Sales 61.8 60.2 60.5 62.7 60.1 60.4
53.8 54.5 54.9 53.8 56.2 54.1 53.8
New Orders/Business 63.9 61.0 62.7 63.0 62.7 60.4
Stocks/Inventories 52.8 58.6 51.4 50.4 53.4 51.0
Supplier Deliveries 55.3 53.6 50.3 50.3 55.6 54.0

BNZ – BusinessNZ PSI Time Series

July 2011 – July 2015

International Results

J.P. Morgan Global Manufacturing PSITM

05 Aug 2015
53.9

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 decrease in expansion for July.

The GDP-Weighted Index (56.0) decreased 1.7 points, while the Free-Weighted Index (55.6) dropped 1.5 points, returning to the same level as May. This is the closest the two measurements have been to each other since December 2014, which also saw a 0.4 point differential.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Jul
2014
Mar
2015
Apr
2015
May
2015
Jun
2015
Jul
2015
GDP-Weighted Index 57.7 57.1 56.1 57.0 57.7 56.0
Free-Weighted Index 56.6 56.4 55.4 55.6 57.1 55.6

BNZ – BusinessNZ PCI Time Series

July 2011 – July 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