BNZ – BusinessNZ
Performance of
Services Index

In the zone – PSI

16 Aug, 2021
57.9
July
-0.5
expanding
slower rate

New Zealand’s services sector remained in expansion mode for the fifth consecutive month, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for July was 57.9 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  While this was down from 58.4 in June, it was still well above the overall average of 53.9 for the survey.

BusinessNZ chief executive Kirk Hope said that the sector will continue to show above average results as long as the key sub-indices of Activity/Sales (63.6) and New Orders/Business (63.2) remain strong.  The one sub-index that remains in contraction is Supplier Deliveries (47.6), although the July result is at its highest level since July 2020.

BNZ Senior Economist Doug Steel said that “combined with last week’s blistering PMI employment reading of 58.3, it all sets up Q3 to be another strong quarter of employment growth and the nation’s unemployment rate continuing to press lower. This is good news if you are looking for a job, not so much if you are trying to find staff.”

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

High demand

New Zealand’s service sector continues to expand at a rapid pace. The Performance of Services Index (PSI) stood at 57.9 in July. That’s not too different from June’s 58.4.
Read more

Navigating challenges

The overall strength in the PSI is quite remarkable given that many respondents continue to highlight significant, and ongoing, issues on the supply side. Shipping delays, freight cost escalation, and raw material shortages continue to be commonly cited.
Read more

General buoyancy

Notwithstanding supply side challenges, looking across the PSI by industry (and by region and by firm size) nearly all recorded PSI readings above 50 (unadjusted) indicating a general buoyancy across the service sector.
Read more

Good for jobs

Another positive in July’s PSI was the employment index at 55.2. Yes, it was a touch lower than June’s 56.5 but still significantly above its long-term norm of 51.4.
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 Jul
2020
Mar
2021
Apr
2021
May
2021
Jun
2021
Jul
2021
BNZ – BusinessNZ PSI 54.5 53.1 61.1 56.1 58.4 57.9
Activity/Sales 55.0 55.8 62.1 58.9 62.4 63.6
Employment 49.9 52.2 60.9 54.3 56.5 55.2
New Orders/Business 56.3 58.6 67.2 62.3 65.4 63.2
Stocks/Inventories 55.5 50.7 55.1 51.4 50.9 52.0
Supplier Deliveries 56.8 44.4 47.0 45.3 46.4 47.6

BNZ – BusinessNZ PSI Time Series

July 2017 – July 2021

International Results

J.P. Morgan Global Manufacturing PSITM

04 Aug 2021
56.3

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 July PCI both show similar levels of expansion to June.

The July GDP-Weighted Index (58.6) decreased 0.2 points from June, while the Free-Weighted Index (60.8) rose 0.5 points.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Jul
2020
Mar
2021
Apr
2021
May
2021
Jun
2021
Jul
2021
GDP-Weighted Index 55.2 54.3 60.0 56.7 58.8 58.6
Free-Weighted Index 56.9 57.9 59.1 57.7 60.3 60.8

BNZ – BusinessNZ PCI Time Series

July 2017 – July 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