BNZ – BusinessNZ
Performance of
Services Index

Marginal call – PSI

19 Oct, 2020
50.3
September
+3.1
expanding
previously contracting

Activity in New Zealand’s services sector managed to just slip into expansion for September, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for September was 50.3, which was up 3.1 points from August (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 like its sister survey for the manufacturing sector, the PSI returned to expansion (albeit close to no change) after lockdown restrictions were lifted in Auckland.

“While the Northern region still displayed contraction in September, its improvement from August, along with increased activity in most other parts of the country, was enough to get the sector back in black.

BNZ Senior Economist Doug Steel said that “recent PSI and PMI readings are consistent with a big bounce back in Q3 GDP from the massive decline in Q2. The exact degree of it is much more difficult to judge.  What lies ahead is arguably more important – making the PSI and PMI indicators important to monitor over coming months”.

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

Some Relief

The service sector’s performance continues to reflect the ebb and flow of COVID related disruptions and restrictions – as it has since the virus arrived. This follows from the sector being more prone to restrictions around gatherings and social distancing than others.
Read more

But Duress Remains

Movement down alert levels does give the service sector hope for improvement ahead. Indeed, there are already some signs of this appearing with the PSI new orders index in September pushing up to 54.9. But it is important to recognise that this remains below its long term average of 57.9.
Read more

Employment and Growth

The strain that the service sector has been under is reflected in the PSI employment index. It remains weak. September’s 48.7 is only marginally better than August’s 47.3. It is the seventh consecutive month below 50 indicating that service sector job losses continue.
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 Sep
2019
May
2020
Jun
2020
Jul
2020
Aug
2020
Sep
2020
BNZ – BusinessNZ PSI 53.5 37.4 54.4 54.4 47.2 50.3
Activity/Sales 52.5 33.4 58.9 55.1 44.8 52.4
Employment 51.9 40.3 45.5 49.7 47.3 48.7
New Orders/Business 57.3 35.9 59.8 55.7 48.0 54.9
Stocks/Inventories 51.7 46.8 52.3 55.8 48.8 44.8
Supplier Deliveries 49.9 41.3 53.3 56.8 45.3 43.0

BNZ – BusinessNZ PSI Time Series

September 2016 – September 2020

International Results

J.P. Morgan Global Manufacturing PSITM

05 Oct 2020
52.4

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 return to expansion for September

The September GDP-Weighted Index (50.8) rose 3.1 points from August, while the Free-Weighted Index (52.4) increased 3.3 points.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Sep
2019
May
2020
Jun
2020
Jul
2020
Aug
2020
Sep
2020
GDP-Weighted Index 52.8 37.6 54.7 55.0 47.7 50.8
Free-Weighted Index 51.4 38.1 56.1 57.0 49.1 52.4

BNZ – BusinessNZ PCI Time Series

September 2016 – September 2020

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