BNZ – BusinessNZ
Performance of
Services Index

Service sector in tough times leading into Xmas – PSI

15 Dec, 2008

There is little Xmas cheer for the service sector as 2008 draws to a close, according to the Bank of New Zealand – Business NZ Performance of Services Index (PSI).

The PSI for November stood at 47.3, down 1.4 points from October and a significant 15.3 points down from November 2007.  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 2007 was 58.1, while it has so far been only 49.2 for 2008.

Business NZ chief executive Phil O’Reilly said that despite the last few months of the year typically being a strong period of sales for many businesses, the difference in overall values between November 2007 and 2008 highlight the fact that the traditional seasonal pickup is stagnant for many.

“Of particular concern is the sharp drop in new orders – the lowest it has been since the survey began. This will feed through into general business activity/sale over the next few months, and with recent figures showing global service sector activity plunging to much lower levels than in New Zealand, it is likely that the eight consecutive months of contraction will continue through to 2009.

Four of the five diffusion indices that make up the PSI exhibited contraction during November. Activity/sales (45.7) fell from October, although employment (49.5) picked up to be close to the level of no change. New orders/business (45.9) slumped to its lowest ever result, which will undoubtedly create further pressure on future activity/sales for many businesses. Stocks/inventories (51.1) experienced another minor drop but still in expansion, while deliveries (46.6) reverted back to a result similar to that recorded in September.

Activity by region was mixed for November, with a combination of both expansion and contraction. The Northern region (44.8) recorded its second worst result, while the Central region (50.4) also experienced a drop in activity, albeit still in expansion for five consecutive months. In the South Island, the Canterbury/Westland region (55.3) continued to build on its October result, while the Otago/Southland region (47.6) recovered from three consecutive sub-40 results to post its highest activity result since March 2008.Click here to view the November PSI & PCI

Click here to view the PSI time series data

Click here to view the PCI time series data

For media comment: Georgina Bond, 021 959 831

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