BNZ – BusinessNZ
Performance of
Services Index

Marching in the right step – PSI

14 May, 2012

The service sector in April displayed further signs of expansion, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for April was 56.7. This was up 2.5 points from March and the highest result for any month since November 2011. A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining. The 2012 April result was also the second highest value recorded for that month since the survey began in April 2007.

BusinessNZ chief executive Phil O’Reilly said that the upwards swing in expansion for April was built on elements of the index showing some historic highs.

“Both business activity and new orders – which make up the greatest proportion of the overall result – again showed healthy levels of expansion. Adding further impetus, the level of expansion for employment was only bettered by a result going back to mid-2007. Likewise, one has to go back 4-5 years to see stocks/inventories and supplier deliveries at such a high level.

“While these are encouraging signs, given the sharp drop off in activity for the manufacturing sector via our PMI, it remains to be seen whether the PSI can continue to hold up in the following months given other parts of the economy finding conditions tricky.

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for April showed the two options for measuring the PCI still in positive territory, but a healthy service sector assisting in pulling up one of the measures. The GDP-Weighted Index (55.6) increased 1.1 points from March as the larger weighting of the service sector boosted the overall result. In contrast, the Free-Weighted Index (53.0) fell a further 1.8 points.

All five sub-indices showed expansion in April. This was again led by new orders/business (60.5), which has remained in a relatively tight band of activity since the start of the year. Activity/sales (56.1) bounced back from a drop in March, while employment (55.1) showed further strength by displaying its highest level of activity since June 2007. Both stocks/inventories (53.8) and supplier deliveries (54.7) recorded levels of expansion not seen since July 2008 and September 2007 respectively.

Unadjusted activity was expansionary in all four regions, although some consolidation took place. Both the Northern (52.9) and Central (52.5) regions recorded similar levels of activity in April, with the latter displaying lower levels of expansion compared with the previous two months. The South Island fared better, with the Otago/Southland region (62.6) bouncing back after a drop in March. The Canterbury/Westland region (58.9) continued to show a healthy level of expansion, although a fall in new business and supplier deliveries meant it did not reach the same expansionary levels as March.

Click here to view the April 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