BNZ – BusinessNZ
Performance of
Services Index

Scaling the heights – PSI

15 Jun, 2015
58.0
May
+1.5
expanding
faster rate

New Zealand’s services sector showed further expansion in May as key indices continued to scale the heights, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for May was 58.0. This was 1.5 points higher than April, and the highest overall value since July 2014 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).

BusinessNZ chief executive Phil O’Reilly said that the key indicators of activity/sales and new orders/business pushed further into the 60+ value range, indicating strong expansion.

“It is also important to note that the employment index for May (56.3) reached its highest value since the PSI survey began in 2007. Combining this with a boost in the proportion of positive comments from businesses (almost 70%), means the services sector experienced a bumper result in May”.

BNZ senior economist Doug Steel said that the service sector has been a standout performer for some time. May’s PSI results simply reinforce this narrative.

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

The service sector has been a standout performer over recent times. The Performance of Services Index tells the story.
Read more  

Positive External Services Trade

External trade has supported services growth. Tourism is part of this, as is an increase in the number of international students.
Read more  

Housing and construction

The construction industry remains important for the service sector’s (and New Zealand economy’s) next moves (along with house prices, migration, the dairy sector and most things global).
Read more  

Wholesaling

Official figures show that wholesale sales fell a seasonally adjusted 0.8% in the first quarter of 2015 such that sales were a relatively subdued 1.8% higher than a year ago.
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 May
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
BNZ – BusinessNZ PSI 54.2 56.7 57.9 57.6 56.5 58.0
Activity/Sales 53.8 57.7 60.6 60.3 60.6 63.0
Employment 51.8 52.0 55.0 54.9 53.9 56.3
New Orders/Business 60.1 60.8 61.4 61.0 62.7 63.1
Stocks/Inventories 53.3 54.7 52.6 58.6 51.1 50.3
Supplier Deliveries 49.9 56.0 54.6 53.3 49.7 49.4

BNZ – BusinessNZ PSI Time Series

May 2011 – May 2015

International Results

J.P. Morgan Global Manufacturing PSITM

03 Jun 2015
54.1
Stephen Summers

Stephen Summers

Economist, BusinessNZ

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 both experience an increase in expansion for May.

The GDP-Weighted Index (56.9) increased 0.9 points, while the Free-Weighted Index (55.5) rose 0.1 points. The increase in both indices was primarily due to expansion in the services sector.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies May
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
GDP-Weighted Index 54.0 57.0 56.0 57.1 56.0 56.9
Free-Weighted Index 54.5 54.9 56.7 56.4 55.4 55.5

BNZ – BusinessNZ PCI Time Series

May 2011 – May 2015

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