BNZ – BusinessNZ
Performance of
Services Index

Service sector expansion steady – PSI

19 Nov, 2007

Expansion levels in the service sector eased slightly during October, according to the BusinessNZ Performance of Services Index (PSI).

The PSI for October stood at 58.4, which was 0.6 points below the September result. 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 seven months, with an average score of 58.1.

BusinessNZ chief executive Phil O’Reilly said that although the October result showed a dip in the rate of expansion, new orders/business produced its highest recorded value, which should bode well for the weeks leading up to Christmas.

“Comments received from businesses highlighted a dent in activity due to the All Backs early exit from the World Cup, but longer-term issues such as the continued high interest rates have seen consumers tighten their belts, while staffing issues still remain a concern.”

For the third consecutive month, all five diffusion indices that make up the PSI continued to show expansion. New orders/business (66.0) again led the way, with its highest value recorded. The remaining indices were also largely similar to the previous month, with three of the other four dipping slightly in October.

Activity by region was particularly strong in the top half of the North Island, with the Northern region (60.4) leading the October values with its highest recorded result. At the opposite end, both the Central (54.7) and Otago/Southland (55.3) regions experienced their lowest results.

Most service sectors again showed expansion during October, with wholesale trade (65.8) continuing to dominate with its strongest recorded result. Property & business services (60.2) was the only other sector to produce a post-60 figure, while accommodation, cafes & restaurants (48.4) slipped back to a small decline after three months of moderate expansion.

The dip in the rate of expansion was also reflected in the fall of positive comments received during the current month, which fell from 56.7% in September to 52.0% in October.

Click here to view the October 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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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