BNZ – BusinessNZ
Performance of
Services Index

Service sector expansion within tight band – PSI

17 Oct, 2011

The service sector remains within a very tight band of expansion that has now continued for three months, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for September was 53.2. This was down 0.6 points from 53.8 in August, and 0.4 points down from 53.6 in July. 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 for 2009 was 48.8, while for 2010 it was 53.2. So far for 2011, it is 52.8.

BusinessNZ CEO Phil O’Reilly said the survey gave positive and negative insights.

“After going through a long period of little change, the last few months’ consistent and solid if not spectacular expansion is good to see. However, while Rugby World Cup games throughout the country over September have brought some businesses additional sales, others have lost out through consumers diverting spending from normal activities.”

The BNZ – BusinessNZ Performance of Composite Index (PCI), which combines the results of both the PSI and PMI, shows both lost steam in September (52.4 and 51.6), with a weakening manufacturing activity the main underlying cause.

BNZ economist Doug Steel noted the considerable variation in the PSI details in September.

“The Rugby World Cup, the change in school holiday timing, Christchurch earthquakes and world growth fears are just some of the influences on the services sector over recent times. The combination of factors has led to some unusual results in the details, like a softening in sales growth, yet robust new orders and a lift in employment.”

Four of the five sub-indices were in expansion during September, with new orders/business (56.2) again leading the way although slightly down on expansion from August. Activity/sales (51.2) dipped significantly in expansion, while supplier deliveries (52.1) decreased one point from August. Stocks/inventories (49.8) improved from August, although still under the no change mark of 50.0, while employment (53.5) had its highest result since April 2010.

Activity was again expansionary for three of the four regions. This was led by Canterbury/Westland (57.2) which increased 0.7 points from August. The Central region (57.0) was close behind, with its highest result since March 2011. The Northern region (55.8) dipped in expansion during September, while the Otago/Southland region (34.4) had worsening results with its lowest level of activity since the PSI began in April 2007.

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

For media comment: Phil O’Reilly 04 496 6552 or Doug Steel 04 474 6923 or 021 246 3182

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