BNZ – BusinessNZ
Performance of
Services Index

Order up – PSI

18 Jun, 2018
57.3
May
+0.9
expanding
faster rate

A lift in new orders/business contributed to New Zealand’s services sector experiencing a lift in expansion levels in May, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for May was 57.3, which was 0.9 points higher than April (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  It was also the second highest level of expansion for the last 11 months.

BusinessNZ chief executive Kirk Hope said that the last three months have shown healthy activity in the sector, and certainly up on activity for the three months prior.

“New orders/business (64.6) was at its highest level since January 2017, while the remaining sub-indices were all up from April.  Although the proportion of positive comments in May (58.0%) was down from April (65.1%), comments received took into account the boost in new business, with many outlining more bookings, increased capacity to work more hours and new client acquisitions”.

BNZ Senior Economist Doug Steel said that “the positive signals in May from the PSI reinforce improvement we have seen in the index over recent months, following a somewhat weaker patch earlier in the year”.

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

A Lot to Like

There was a lot to like in May’s Performance of Services Index (PSI). First, the headline reading edged up to 57.3 from 56.4 in April. This indicates the service sector is not only expanding at a solid rate, but has even accelerated a little.
Read more

Q1 Dip Looks Temporary

The positive signals in May from the PSI reinforce improvement we have seen in the index over recent months following a somewhat weaker patch earlier in the year.
Read more

Mixed Signals

The current buoyancy in the PSI is in contrast to some other indicates like negative business confidence and wavering electronic card transactions over recent months.
Read more

Housing

REINZ data for May gave the sense that housing markets outside Auckland and Canterbury are showing better signs of resilience, having looked a bit equivocal on it over the last couple of months.
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 May
2017
Jan
2018
Feb
2018
Mar
2018
Apr
2018
May
2018
BNZ – BusinessNZ PSI 58.1 55.9 55.1 58.6 56.4 57.3
Activity/Sales 62.4 59.4 53.7 64.7 56.6 58.1
Employment 53.3 50.9 50.8 50.8 51.6 52.8
New Orders/Business 62.2 59.5 60.8 63.7 61.5 64.6
Stocks/Inventories 54.2 52.5 54.4 55.9 52.0 54.6
Supplier Deliveries 54.8 54.1 54.6 55.7 51.8 53.5

BNZ – BusinessNZ PSI Time Series

May 2014 – May 2018

International Results

J.P. Morgan Global Manufacturing PSITM

05 Jun 2018
54.3

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) again saw the two options for measuring the PCI display contrasting results during May.

The May GDP-Weighted Index (57.0) increased 0.7 points from the previous month, while the Free-Weighted Index (56.7) decreased 0.2 points.  The increase in the former was influenced by an improvement in service sector expansion levels.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies May
2017
Jan
2018
Feb
2018
Mar
2018
Apr
2018
May
2018
GDP-Weighted Index 58.1 55.8 55.0 57.5 56.3 57.0
Free-Weighted Index 58.7 55.8 54.7 55.8 56.9 56.7

BNZ – BusinessNZ PCI Time Series

May 2014 – May 2018

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