BNZ – BusinessNZ
Performance of
Services Index

Over the line

17 Feb, 2025
50.4
January
+2.3

Monthly Change

Expanding
Previously Contracting

After 10 consecutive months of contraction, New Zealand’s services sector exhibited slight expansion during January, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for January was 50.4 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). This was up 2.3 points from December but still well below the average of 53.1 over the history of the survey.

BusinessNZ’s CEO, Katherine Rich said that like its sister survey, the PSI has also waited an extended period of time to get back into expansion mode. For the sub-index results, Activity/Sales (54.0) led the way in January with its highest value since March 2023. Although New Orders/Business (50.0) showed no change for January, it was still its highest value since February 2024. In contrast, Employment (47.1) and Supplier Deliveries (47.8) remained in contraction during the month.

The proportion of negative comments for January stood at 61.9%, which was up from 57.5% in December and 53.6% in November. The economic downturn and uncertainty featured heavily amongst respondents.

BNZ’s Senior Economist Doug Steel said that “the PSI is consistent with stabilisation rather than elevation, but its latest move upwards is encouraging”.

View the Time Series Data
Activity/Sales
54.0
Employment
47.1
New Orders/
Business
50.0
Stocks/Inventories
50.1
Supplier
Deliveries
47.8
45.8
53.7
48.7
48.0
Katherine Rich

Katherine Rich

CEO, BusinessNZ

BNZ - BusinessNZ PSI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PSI

Services Landscape

Back above 50 (just)

The Performance of Services Index (PSI) jumped up from 48.1 to 50.4 in January. After 10 consecutive months in contraction, it has finally nudged back above the breakeven 50 mark.

Read more

Growth

Like the PSI, the Performance of Manufacturing Index (PMI) also lifted back above 50 in January. Combining the PSI and PMI, the Composite Index (PCI) suggests an economic recovery later this year.

Read more

Labour market

The PSI employment index (47.1) was the only sub-index to decline in January and remains the furthest below 50. It continues to suggest further contraction in service sector employment.

Read more

Interest rates

The latest PSI outturn is reassuring that New Zealand’s economy may be at a turning point. This is consistent with our forecasts so doesn’t materially change our view of the world.

Read more

View full BNZ Services Snapshot
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.

View website

PSI Time Series Table

The results are seasonally adjusted.

National Indicies Jan 2024 Sep 2024 Oct 2024 Nov 2024 Dec 2024 Jan 2025
BNZ – BusinessNZ PSI 50.6 45.8 46.1 49.2 48.1 50.4
Activity/Sales 50.9 45.6 44.4 48.5 46.5 54.0
Employment 48.1 45.7 46.4 46.7 47.4 47.1
New Orders/Business 50.8 46.8 47.9 49.5 49.4 50.0
Stocks/Inventories 52.3 47.6 47.9 52.1 48.9 50.1
Supplier Deliveries 48.2 44.2 47.7 52.4 47.7 47.8
View the Time Series Data

BNZ – BusinessNZ PSI Time Series

January 2019 – January 2025

International Results

J.P. Morgan Global Manufacturing PSITM

05 Feb 2025
52.2
USA
52.9
UK
50.8
Eurozone
51.3
China
51.0
Japan
53.0
Australia
51.2
NZ
50.4

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PSI Releases

No Christmas Joy

New Zealand’s services sector exhibited a faster rate of contraction during December, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for December was 47.9 (A PSI reading above 50.0 indicates that the service sector is generally...

Knocking on the door

New Zealand’s services sector showed contraction at a slower rate during November, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for November was 49.5 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

Stuck in a rut

New Zealand’s services sector result for October remained in contraction, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for October was 46.0 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0...

Same same

September's result for New Zealand’s services sector remained the same as August, although still firmly in contraction mode, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for September was 45.7 (A PSI reading above 50.0 indicates that...

Slow crawl

Activity in New Zealand’s services sector inched its way higher during August, although still firmly in contraction territory, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for August was 45.5 (A PSI reading above 50.0 indicates that...

View all PSI releases

BNZ – BusinessNZ
Performance of
Composite Index

50.6

GDP-Weighted Index

50.8

Free-Weighted Index

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) saw both measures back in expansion during January.

The January GDP-Weighted Index (50.6) increased 2.6 points from December, while the Free-Weighted Index (50.8) rose 3.3 points.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Jan 2024 Sep 2024 Oct 2024 Nov 2024 Dec 2024 Jan 2025
GDP-Weighted Index 50.2 46.0 46.1 49.0 48.0 50.6
Free-Weighted Index 48.7 46.4 46.2

 47.7 47.5 50.8
View the Time Series Data

BNZ – BusinessNZ PCI Time Series

January 2020 – January 2025

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