BNZ – BusinessNZ
Performance of
Services Index

Service sector booming – PSI

18 Jun, 2007

Service sector activity is still on the increase, according to BusinessNZ’s new monthly survey.

The BusinessNZ Performance of Services Index (PSI) for May stood at 58.5, up 0.2 on the previous month. A PMI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining.

The May PSI shows growth in all component indexes, with the highest growth recorded for new orders (67.8), indicating ongoing expansionary activity in the foreseeable months ahead. The lowest result was for employment (51.2) which, although positive, is indicative of the wider problem most businesses are currently facing regarding labour shortages and expectations of slower employment growth.

The survey of the service sector draws on data from about 300 service companies across New Zealand and provides an early indicator of activity levels in the sector.

A similar structure to the BusinessNZ PMI and compatibility with surveys in the US, EU, Asia and Australia allows for valid comparisons with other countries.

BusinessNZ economist Stephen Summers says the result for May was positive and in line with similar indicators of the service sector which show continued strong growth. However, he warned about any complacency in the sector.

“The fact that strong growth continues this month is good, but there are constraints within this sector which could be holding it back. Concerns about skill shortages, the effect of the high New Zealand dollar and increased interest rates on consumption will certainly have a dampening effect on the ability for further growth.”

Despite the strong overall result for May, the number of negative and positive comments relating to activity over the month was very similar (55.5 per cent positive compared to 45.5 per cent negative). There has been a slight increase in the percentage of positive comments compared to the previous month, which is in line with the slightly greater expansion evident in May.

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

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