BNZ – BusinessNZ
Performance of
Services Index

Pause for effect – PSI

20 Nov, 2017
55.6
October
-0.3
expanding
slower rate

Activity in New Zealand’s services sector during October was largely on par with recent months, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for October was 55.6, which was 0.3 points lower than September (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 third time in four months that activity rested between 55-56 points.

BusinessNZ chief executive Kirk Hope said that while the sector has shown consistent and healthy levels of expansion, it is slightly off the 56-58 values generally experienced in recent years.

“Despite overall expansion not being quite in the same league as recent years, the proportion of positive comments for October (67.6%) experienced a noticeable lift from September (56.6%), with many outlining conditions being business as usual.  Also, a number of negative comments continued to revolve around General Election uncertainly”.

BNZ Senior Economist Doug Steel said that “these are robust results given the prevailing uncertainty surrounding the election, coalition negotiations, and government formation over the period. It was a similar story in last week’s equivalent for the manufacturing sector. It is a positive start for economic growth in the final quarter of 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

Services Solid

Economic activity in the service sector maintained substantial momentum in October, as it did in September.
Read more

Demand Robust

The PSI activity/sales indicator sat at a healthy 58.0 in October. It indicates a solid rate of sales expansion that was a touch faster than in September when the indicator was 56.6.
Read more

Employment Slower

One not-so-strong spot in October’s PSI was the employment index that slowed to 51.2 from 53.7 in September.
Read more

Housing

House sales remain weak, being down circa 16% in October on a year ago. Turnover has been dented by loan-to-value lending restrictions put in place last year among other factors.
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 Oct
2016
Jun
2017
Jul
2017
Aug
2017
Sep
2017
Oct
2017
BNZ – BusinessNZ PSI 57.2 58.1 55.8 57.1 55.9 55.6
Activity/Sales 59.2 59.1 55.6 62.7 56.6 58.0
Employment 55.2 54.0 54.9 52.2 53.7 51.2
New Orders/Business 59.4 63.7 60.0 62.8 60.1 60.4
Stocks/Inventories 54.5 54.7 52.3 52.7 52.7 51.1
Supplier Deliveries 54.5 56.5 52.1 52.8 53.5 52.8

BNZ – BusinessNZ PSI Time Series

October 2013 – October 2017

International Results

J.P. Morgan Global Manufacturing PSITM

06 Nov 2017
54.1

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) saw the two options for measuring the PCI again both experiencing a dip in expansion during October.

The October GDP-Weighted Index (55.8) decreased 0.2 points from September, while the Free-Weighted Index (56.7) dropped 0.1 points.  Given expansion levels for both the manufacturing and services sector were very similar to the September results, this translated into minimal movement for both PCI values in the current month.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Oct
2016
Jun
2017
Jul
2017
Aug
2017
Sep
2017
Oct
2017
GDP-Weighted Index 56.9 57.8 55.8 57.2 56.0 55.8
Free-Weighted Index 56.3 57.4 56.2 57.9 56.8 56.7

BNZ – BusinessNZ PCI Time Series

October 2013 – October 2017

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