BNZ – BusinessNZ
Performance of
Services Index

Service sector continues expansion – PSI

20 Aug, 2007

Service sector activity is continuing to expand, although not at levels recently recorded, according to BusinessNZ’s monthly survey.

The BusinessNZ Performance of Services Index (PSI) for July stood at 55.2, which was down from the 57.8 and 58.5 recorded in June and May respectively. A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining. The survey has now been running for four months.

Four of the five diffusion indices that make up the PSI showed expansion in July. New orders/business (61.8) was again strong, but down from the 66.1-68.3 values recorded for the first three months. Activity/sales (56.4) took a similar dip, while employment (51.7) and supplier deliveries (52.4) displayed minor expansion. Stocks/inventories (49.4) continued to decrease, although this is often due to increased overall activity.

Activity was again similar across most parts of the country, although the Canterbury/Westland region (49.1) bucked the trend and recorded a result indicating a slight decline.

Most service sectors showed expansion during July, led by health & community services (63.5). Property & business services (60.1) slipped to second for ranking of industry group, although still displayed a strong level of expansion. At the other end, retail trade (48.7) experienced a decline for the first time, largely due to a fall in sales levels.

BusinessNZ CEO Phil O’Reilly said that given the survey was only four months old, it was difficult to ascertain whether a continued weakening of expansion was part of a general downwards trend. Unfavourable weather conditions, as outlined by a large number of respondents, may indicate seasonal factors playing a significant role for this time of year.

The number of negative and positive comments relating to activity over the month was again very similar (52.6% positive compared with 47.4% negative). Compared with the same time last year, those with negative comments for the current month had an average score of 3.3 (where 1=large rise and 5=large fall), compared with 2.1 for those enjoying positive activity at present. Overall, the national result for activity compared with 2006 stood at 2.7, up from 2.5 in June.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: Georgina Bond, 021 959 831

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