BNZ – BusinessNZ
Performance of
Services Index

Service sector has tough start to 2009 – PSI

16 Feb, 2009

Last month was the worst ever surveyed in the service sector.

The BNZ Capital-BusinessNZ Performance of Services Index (PSI) for January was 42.7, down 5.3 points from December and down 9.2 points from January 2008.

The PSI measures sales, new orders and other activity in the services sector in New Zealand. A PSI reading above 50.0 indicates that the sector is generally expanding; below 50.0 that it is declining.

The average PSI value for 2008 was 49.1 and for 2007 was 58.1.

BusinessNZ Chief Executive Phil O’Reilly said the first month of 2009 had unsurprisingly shown another fall in activity, but the level of the drop was severe.

“Contraction over the last nine months has been moderate rather than significant, but January’s decline, even taking into account seasonal factors, now puts us on a level with other countries, including the US, where the JPMorgan Global Services Index currently stands at 43.0.

BNZ Capital Senior Markets Economist Craig Ebert said the rapidly softening labour market was a concern and employment and capital expenditure would be the big things to watch.

“The international economy is now expected to outright contract this year and no-one is immune from it,” Mr Ebert said.

All five diffusion indices that make up the PSI contracted during January, with three showing their lowest ever result. Activity/sales (37.3) fell significantly from December, while employment (43.5) recorded its second lowest value. New orders/business (45.2) returned to a similar level recorded in November, and for the fourth time in five months has scored less than 50. Stocks/inventories (45.7) fell for the fifth consecutive month, while deliveries (44.2) again recorded contraction after an improvement in December.

Activity by region was generally negative, with the only exception being the Central region (53.9). The Northern region (39.3) continued to display lower activity levels with its first sub-40 result. In the South Island, the Canterbury/Westland region (48.3) went into contraction for the first time since August 2008. After an encouraging result for December, the Otago/Southland region (40.4) returned to the low levels of the latter half of 2008.

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

For media comment:
Stephen Toplis, ph 04 474 6905

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