BNZ – BusinessNZ
Performance of
Services Index

Over the line

18 Dec, 2023
51.2
November
+2.0

Monthly Change

Expanding
Previously Contracting

New Zealand’s services sector recorded expansion in November, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for November was 51.2 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). This was up 2.0 points from October, although still below the long-term average of 53.5 for the survey.

BusinessNZ chief executive Kirk Hope said that the last few months has seen the sector bounce between contraction and expansion. That degree of contrast was also evident with the key November sub-index results for New Orders/Business (52.3) remaining in expansion, while Activity/Sales (48.7) was still below the 50.0 point mark. Employment (51.0) recorded its highest result since May, while Supplier Deliveries (52.9) produced its highest result since March.

“The proportion of negative comments stood at 54.0% for November, which was down from 58.2% in October and 61.8% in September. Overall, negative comments continued to be pinpointed on key areas such as the economy, inflation and cost of living”.

BNZ Senior Economist Doug Steel said that “despite November’s lift, the PSI remains below its long-term norm of 53.5. And the combination of contracting activity/sales and rising inventories raises questions about the sustainability of the nudge higher”.

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

Bumping Along, Not Bumper

The Performance of Services Index lifted to 51.2 in November from October’s 49.2. It is a step to the positive.

Read more

Some Improvements, But Demand Below Average

That is not to dismiss some glimpses of improvement. After all, November’s PSI is the highest reading since May. And looking through the recent monthly oscillations, there is a hint of underlying stability.

Read more

North v South

By region, Northern underperformed in November. On an unadjusted basis, Northern’s PSI of 50.8, was a bit behind Central’s at 53.7, and well back from Canterbury/Westland on 58.8 and Otago/Southland’s 59.6.

Read more

Growth Struggles Continue

Combining the PSI with the better, but still very weak, PMI from last week yields a composite index (PCI) that suggests the economy has continued to struggle in Q4.

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 Nov 2022 Jul 2023 Aug 2023 Sep 2023 Oct 2023 Nov 2023
BNZ – BusinessNZ PSI 53.7 48.2 47.6 50.8 49.2 51.2
Activity/Sales 57.4 39.9 45.5 51.0 47.5 48.7
Employment 51.6 49.1 50.9 50.6 49.5 51.0
New Orders/Business 57.0 45.3 48.8 54.0 52.1 52.3
Stocks/Inventories 54.4 53.5 51.6 48.4 51.5 55.0
Supplier Deliveries 46.5 52.0 49.4 49.9 50.1 52.9

BNZ – BusinessNZ PSI Time Series

January 2019 – November 2023

International Results

J.P. Morgan Global Manufacturing PSITM

05 Dec 2023
50.6

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]

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Struggle street

New Zealand’s services sector continued to contract further in April, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for April was 47.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

Lost momentum

New Zealand’s services sector fell back into contraction during March, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for March was 47.5 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

Path of expansion

New Zealand’s services sector continued its path of expansion in February, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for February was 53.0 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Green shoots?

New Zealand’s services sector climbed back into expansion for the start of 2024, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for January was 52.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

BNZ – BusinessNZ
Performance of
Composite Index

50.9

GDP-Weighted Index

49.2

Free-Weighted 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 show differing outcomes in November.

The November GDP-Weighted Index (50.9) increased 2.3 points from October, while the Free-Weighted Index (49.2) rose 2.8 points but remained in contraction.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Nov 2022 Jul 2023 Aug 2023 Sep 2023 Oct 2023 Nov 2023
GDP-Weighted Index 53.1 48.3 47.5 50.3 48.6 50.9
Free-Weighted Index 50.9 47.5 47.0 48.7 46.4 49.2

BNZ – BusinessNZ PCI Time Series

January 2019 – November 2023

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