BNZ – BusinessNZ
Performance of
Services Index

Service sector crease bound? – PSI

30 Jan, 2012

The service sector returned to a more subdued level of expansion in December, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for December was 50.6. This was down 5.6 points from 56.2 in November, and 0.2 points lower than the October result. A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining. The average PSI value over 2011 was 52.6.  While this was better than the 48.8 recorded for 2009, it was lower than the 53.2 recorded for 2010.

BusinessNZ chief executive Phil O’Reilly said that like its sister survey the PMI, 2011 saw the PSI ending with more of a whimper than a bang, as the November result was sandwiched between two lacklustre results.

“While the PSI has now remained in positive territory for 26 consecutive months, it has struggled to push any higher than moderate levels of expansion. The results for December and October indicate that the sector may struggle for stronger expansion in the near future.

Bank of New Zealand senior economist Craig Ebert said the December PSI gives a sense of ongoing progression, underscored by its employment component remaining in expansion territory.

“This survey’s constructive view on staffing is encouraging, and corresponds with other surveys produced in the last couple of months, all signalling ongoing growth on the jobs front.”

The BNZ – BusinessNZ Performance of Composite Index (PCI), which combines the results of both the PSI and PMI, returned to historical patterns with the two options for measuring the PCI (GDP weighted and free weighted) showing the exact same result of 50.7. This was mainly due the sub-indices for both options producing very similar values throughout.

For the first time since August 2011, only three of the five sub-indices showed expansion in December.  This was again led by new orders/business (53.6) followed by employment (52.7) and stocks/inventories (51.9). Activity/sales (49.7) went into decline for the first time since July 2010. Likewise, supplier deliveries (48.6) went into contraction for the first time since March 2011.

Unadjusted activity was again expansionary for all four main regions in December. The Canterbury/Westland region (55.3) led the way, although it recorded its lowest level of expansion since July 2011. The Central region (54.5) was close behind, while the Northern region (51.7) lost most of its gains in November. The Otago/Southland region (50.5) managed to just keep its head above water, despite falling 10.3 points from November.

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

For media comment: Phil O’Reilly 04 496 6552 or Craig Ebert 04 474 6799

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

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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