BNZ – BusinessNZ
Performance of
Services Index

Moving on up – PSI

20 Oct, 2014

The services sector showed increased expansion during September, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for September was 58.0.  This was 0.3 points up from August, and continues to show a consistent and healthy level of activity in the sector.  So far for 2014 the PSI has averaged 56.7 (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 September result was in fine form across the board, with the last three months of activity particularly strong.

“Looking at the combined results for July-September, it shows that the sector experienced its highest overall level of quarterly expansion since 2007”.

“In addition, both new orders/business and activity/sales both displayed results above the 60-point mark, which are key determinants for the overall result.  While the number of positive comments from respondents was down on previous months, there is nothing to suggest that growth will significantly ease as we enter the last quarter of the year.

BNZ Senior Economist Craig Ebert said “The latest PSI gelled with the NZIER’s recent Quarterly Survey of Business Opinion, in that it told of stronger than normal expansion in the services sector, and notably so for employment.”

For the fourth month in a row, all five main sub-indices were in expansion.  New orders/business (61.0) led the charge in September, followed by activity/sales (60.3), with both sub-indices over the 60-point mark.  After recording its highest value since the survey began, employment (55.0) produced a slightly lower level of expansion for September, although still near historic highs. Both supplier deliveries (53.2) and stocks/inventories (50.7) fell from August, but remained in positive territory.

Activity continued to remain positive throughout the country, which has now been the case for the last seven months.  In the North Island, the Northern region (56.5) experienced a result that was very similar to the previous month, while the Central region (57.1) edged up somewhat after a dip in expansion levels for August.  In the South Island, the Canterbury/Westland region (58.0) recovered strongly from its dip in expansion from the previous month, while the Otago/Southland region (66.0) returned to levels of activity seen in July.

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for September saw the two options for measuring the PCI both push past the 58 point mark.  The GDP-Weighted Index increased 0.4 points from August to stand at 58.2, while the Free-Weighted Index (58.7) rose 1.4 points from August, which meant they reached their highest level since April and March respectively.

Click here to view the September PSI & PCI
Click here to view the PSI timeseries data
Click here to view the PCI timeseries data

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