BNZ – BusinessNZ
Performance of
Services Index

Pass mark for mid-year report – PSI

15 Aug, 2011

The service sector experienced a solid if unspectacular result halfway through 2011, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for July was 54.5. This was very similar to the June result of 54.7 and the highest July result since 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 2009 was 48.8, while for 2010 it was 53.2. So far for 2011, it is 52.6.

BusinessNZ chief executive Phil O’Reilly said that the July result provided both positive and negative aspects for the sector.

“While the results for both June and July represented an ongoing and steady level of expansion, the dip in employment to its first decline since January 2011 was disappointing given it had managed to keep its head above water for the previous five months. However, one particular pleasing aspect was the ongoing incremental lift in new orders/business, which may continue in the months ahead as increased business comes out of earthquake related recovery work and the rugby world cup.”

The BNZ – BusinessNZ Performance of Composite Index (PCI), which combines the results of both the PSI and PMI, shows that both options for measurement lost a little steam in July (values of 54.5 and 54.4). However, both results were still higher than the May 2011 figures.

Bank of New Zealand’s Head of Research Stephen Toplis said that July’s PSI provided yet further evidence that the New Zealand economy had plenty of momentum prior to the financial market volatility of last week.

“Unfortunately, it’s likely that the global equity rout, in particular, will have a negative impact on confidence next month. We will await the next set of indicators with baited breath in the hope that the fall out is not excessive.”

Four of the five sub-indices were in expansion during July, with new orders/business (58.6) continuing its upwards trend with its highest result since March 2010, while activity/sales (56.3) slipped slightly from its June result. Stocks/inventories (53.5) also dipped from June, although supplier deliveries (52.0) recorded its highest value since September 2010.  Lastly, employment (48.8) recorded its first decline in employment since January 2011.

Activity by region represented a tale of two islands for July.  The Northern region (53.5) increased 1.4 points from June to record its highest result since March 2011, while the Central region (54.1) slipped for the second consecutive month. The Canterbury/Westland region (45.4) experienced a significant drop to its lowest result since March 2011, while the Otago/Southland region (46.0) continued to slowly improve on recent results, although remains in contraction for the seventh consecutive month.

Click here to view the July PSI & PCI
Click here to view the PSI time series data
Click here to view the PCI time series data

For media comment: Phil O’Reilly 04 496 6552 or Stephen Toplis 04 474 6905

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