BNZ – BusinessNZ
Performance of
Services Index

Service sector continues strong expansion – PSI

15 Oct, 2007

The level of expansion in the service sector for September remained near its peak, according to the BusinessNZ Performance of Services Index (PSI).

The PSI for September stood at 59.0, which was very similar to the top result of 59.4 recorded in August. 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 six months, with an average score of 58.0.

All five diffusion indices that make up the PSI continued to show expansion in September. New orders/business (65.4) again led the way, with a level of strong expansion that was exactly the same as August. The level of expansion for activity/sales (60.7) dipped slightly, but stocks/inventories (57.1) experienced a large increase from August, probably due to businesses building up stocks for Christmas.

Activity was typically stronger in the South Island, with the Otago/Southland (61.9) and Canterbury/Westland (61.2) regions showing strong expansion. The Northern (58.7) and Central (56.2) regions displayed lower levels of expansion, although well into positive territory.

Most service sectors again showed expansion during September, with wholesale trade (63.4) continuing to dominate. Property & business services (62.3) experienced a pick up in activity after a few months of sliding results, while accommodation, cafes & restaurants (58.1) also received a lift after a lean period of activity.

There was a noticeable pick up in the number of positive comments for September (56.7% positive compared with 43.3% negative). Activity for those with negative comments for September remained at a score of 3.2 (where 1=large rise and 5=large fall), compared with 2.3 for those enjoying positive activity. Overall, the national result for activity compared with 2006, stood at 2.7.

BusinessNZ chief executive Phil O’Reilly said the strong September result, on the back of the August peak, bodes well for the industry leading into the last quarter of 2007.

“Businesses are already gearing up for the busy Christmas season with stocks/inventories showing a sharp increase. It was also pleasing to see a pick up in positive comments as many respondents prepare for what is traditionally their busiest season of the year,” he said.

Click here to view the September 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.

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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...

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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).

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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