BNZ – BusinessNZ
Performance of
Services Index

Increased pace – PSI

14 Mar, 2016
56.9
February
+1.5
expanding
faster rate

New Zealand’s services sector experienced increased levels of expansion in February, according to the BNZ – BusinessNZ Performance of Services Index (PSI).
 
The PSI for February was 56.9.  This was 1.5 points higher than January, and continues the trend of the sector recording a post-55 point value since December 2014 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).

BusinessNZ chief executive Kirk Hope said that February’s result was boosted by a strong showing in sales (60.0) and new orders/business (61.4).

 
“An overall increase in expansion also saw a lift in the proportion of positive comments from respondents, rising from 59.7% in January to 67.6% in February.  While some comments revolved around seasonal factors, a number noted increased tourist numbers, as well as proactive steps to increase market share”.
 
Regarding the February result, BNZ Senior Economist Craig Ebert said “The most reassuring aspect of February’s PSI, however, was the bounce back in its employment index.  This proved important, in that it offset the softness in February’s Performance of Manufacturing Index on staffing, which had moved into contraction territory.”

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

The PSI

Following its sharp loss of momentum in January, the Performance of Services Index got a grip in February. Lifting the 3-month average to 57.0.
Read more  

Wholesale

Another source of comfort in the PSI is the robustness in its Wholesale Trade component. We mention this with the prospect of seeing a relatively flat performance in wholesaling.
Read more  

Retail

In contrast, the Retail Trade component is exhibiting some weakness. This was not only weaker than January but down by quite some margin on where it was in February 2015.
Read more  

Housing

Looking at February’s Real Estate Institute results you’d be forgiven for thinking they were a bit ordinary, but scratch the surface and there was a fair bit of strength.
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 Feb
2015
Oct
2015
Nov
2015
Dec
2015
Jan
2016
Feb
2016
BNZ – BusinessNZ PSI 56.2 56.4 59.4 59.5 55.4 56.9
Activity/Sales 61.9 57.4 62.1 62.1 58.0 60.0
Employment 52.7 53.1 53.1 54.9 50.9 53.5
New Orders/Business 59.0 56.7 56.8 63.9 57.5 61.4
Stocks/Inventories 53.9 56.1 56.2 56.7 54.7 55.5
Supplier Deliveries 52.3 55.8 56.0 57.4 55.4 53.8

BNZ – BusinessNZ PSI Time Series

February 2012 – February 2016

International Results

J.P. Morgan Global Manufacturing PSITM

03 Mar 2016
50.7

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 show contrasting movements from January.
 
The February GDP-Weighted Index (56.7) rose 0.7 points from January, while the Free-Weighted Index (57.1) dropped 0.4 points in expansion. The increase in expansion with the former was due to the services sector expanding at a faster rate, while the Free-Weighted Index experienced a drop in manufacturing expansion.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Feb
2015
Oct
2015
Nov
2015
Dec
2015
Jan
2016
Feb
2016
GDP-Weighted Index 56.1 55.9 58.4 58.3 56.0 56.7
Free-Weighted Index 56.9 54.1 57.2 58.0 57.5 57.1

BNZ – BusinessNZ PCI Time Series

February 2012 – February 2016

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