BNZ – BusinessNZ
Performance of
Services Index

Return to norm – PSI

14 May, 2018
55.9
April
-2.7
expanding
slower rate

New Zealand’s services sector returned to expansion levels seen during the start of the year, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for April was 55.9, which was 2.7 points lower than March (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  It was the third time in the last five months that an expansion result of 55.9 has been reached.

BusinessNZ chief executive Kirk Hope said that while the April results showed a decrease in expansion levels, the April result was still very consistent with recent values.

“Comments clearly remain more positive (65.1%) than negative, with many stating business as usual, as well as various seasonal factors at work.  Overall, the sector remains in good heart”.

BNZ Senior Economist Craig Ebert said that “even with its big fall in April, the PSI remained better than average.  The long-term average for the series is 54.5. Outside of March’s spike, the PSI has been averaging just-above normal post the announcement of the new government”.

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

The PSI

Even with its big fall in April, the Performance of Services Index (PSI) remained better than average. In numbers, the PSI dropped to a seasonally adjusted 55.9, from a spikey looking level of 58.6 in March.
Read more

Retailing

If there is a lagging industry within the services sector it is arguably retailing. Certainly, this was the weakest of the industries in April’s PSI, with an unadjusted reading of 43.6.
Read more

Employment

The labour market remains a backbone to aggregate household spending, albeit more so via jobs growth than strong wage inflation. This was highlighted in the March quarter labour market data.
Read more

Housing

The Real Estate Institute’s housing data for April were a little underwhelming. Yes, there was a bounce-back in home sales, but only just (on our seasonally adjusted estimates).
Read more

Craig Ebert

Craig Ebert

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 Apr
2017
Dec
2017
Jan
2018
Feb
2018
Mar
2018
Apr
2018
BNZ – BusinessNZ PSI 53.8 55.9 55.9 55.1 58.6 55.9
Activity/Sales 52.6 58.4 59.4 53.6 64.5 56.6
Employment 55.2 55.9 50.7 50.7 50.6 51.4
New Orders/Business 55.7 60.4 59.6 60.7 63.5 60.8
Stocks/Inventories 47.4 51.4 52.5 54.3 55.4 51.9
Supplier Deliveries 49.6 50.5 54.1 54.6 55.7 51.8

BNZ – BusinessNZ PSI Time Series

April 2014 – April 2018

International Results

J.P. Morgan Global Manufacturing PSITM

04 May 2018
53.8

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 display contrasting results during April.

The April GDP-Weighted Index (55.9) decreased 1.5 points from the previous month, while the Free-Weighted Index (54.4) increased 1.0 point.  The decrease in the former was influenced by a drop in service sector expansion levels.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Apr
2017
Dec
2017
Jan
2018
Feb
2018
Mar
2018
Apr
2018
GDP-Weighted Index 53.8 55.5 55.9 55.0 57.4 55.9
Free-Weighted Index 54.1 54.1 55.8 54.6 55.8 56.8

BNZ – BusinessNZ PCI Time Series

April 2014 – April 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