BNZ – BusinessNZ
Performance of
Services Index

New orders/business improves, but sector still contracting – PSI

20 Jul, 2009

The service sector continues to show contraction, but new business levels may provide better results in the months ahead, according to the BNZ Capital – BusinessNZ Performance of Services Index (PSI).

The PSI for June stood at 45.0, which was 1.2 points down from May. In comparison with previous years, the June result was 0.6 points down from June 2008, and 12.8 points down from 2007.  A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining. The average PSI value for 2007 was 58.1, while for 2008 it was 49.1. For the first half of 2009, the average score has been 45.2, almost identical to the latest result.

BusinessNZ chief executive Phil O’Reilly said that the required boost in new business/orders for an overall improvement in the service sector showed some encouraging signs for June. However, activity remains stuck in a relatively short band of contraction.

“Comparisons with offshore results tells us both good and bad news. The good news has been we didn’t seem to hit the depths of activity that many countries did. The bad news is that the global service scene is showing a clear pathway to recovery, with the global activity now at 47.4. New Zealand has to start showing a similar path if there’s going to be any confidence around the possibility that the second half of 2009 is going to be much better than the first.

Insert BNZ Comment

Four of the five diffusion indices that make up the PSI exhibited contraction during June, but exhibited a mixture of results compared with May. Activity/sales (43.9) remained exactly the same as May, while employment (43.6) dipped after an improvement in the previous month. New orders/business (50.8) went into positive territory for the first time since March, and for only the third time in ten months. Stocks/inventories (41.0) dropped to its lowest level since the survey began, while deliveries (42.2) did likewise, undershooting the previous low of 42.7 experienced in June 2008.

Activity continued to remain negative in all four main regions in June, however the South Island showed some recovery. The Canterbury/Westland region (47.5) recorded its highest value since March, while the Otago/Southland region (44.8) recovered back to levels experienced in April. The Northern region (44.4) dipped after a sizeable improvement in May, while the Central region (45.8) recorded its lowest level of activity since the survey began.

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: Stephanie Moakes, ph 04 496 6554, or 021 959 831.

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