BNZ – BusinessNZ
Performance of
Services Index

Sinking

15 Jul, 2024
40.2
June
-2.4

Monthly Change

Contracting
Faster Rate

Activity in New Zealand’s services sector sunk even further during June, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for June was 40.2 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). This was down 2.4 points from May and for the second month in a row the lowest level of activity for the sector for a non-COVID lockdown month since the survey began in 2007.

BusinessNZ chief executive Kirk Hope said that after a bad May result, the June figures simply got worse. The key index values for Activity/Sales (35.6) and New Orders/Business (38.3) were both the lowest for a non-COVID lockdown month. Employment (45.6) was at its lowest point since February 2022, while Supplier Deliveries (41.6) was the lowest since March 2022.

The proportion of negative comments for June (67.0%), which was up on May (65.4%) and April (66.3%). Respondents continued to note recessionary aspects of the current economic downturn.

BNZ’s Senior Economist Doug Steel said that “the Performance of Services Index has been well below average for more than a year. Moreover, the weakness appears to be accelerating”.

Activity/Sales
35.6
Employment
45.6
New Orders/
Business
38.3
Stocks/Inventories
43.5
Supplier
Deliveries
41.6
40.4
41.3
40.3
44.6
Kirk Hope

Kirk Hope

CEO, BusinessNZ

BNZ - BusinessNZ PSI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PSI

Services Landscape

Retail recession

The Performance of Services Index has been well below average for more than a year. Moreover, the weakness appears to be accelerating.

Read more

Tourism lift flattening

International visitor arrivals drive segments of service sector activity. Growth has slowed sharply. Prior extremely rapid growth off a very low base, following the reopening of the country’s borders, has ended.

Read more

Housing

Housing market activity has significant influence across various parts of the service sector. While more listings have enabled some activity, transaction numbers have been generally subdued.

Read more

Architects

Architect responses to the QSBO have long reflected a softer outlook for residential and commercial building activity.

Read more

Doug Steel

Doug Steel

Senior Economist, BNZ

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.

National Indicies Jun 2023 Feb 2024 Mar 2024 Apr 2024 May 2024 Jun 2024
BNZ – BusinessNZ PSI 50.2 52.4 47.0 46.3 42.6 40.2
Activity/Sales 51.8 52.4 44.5 45.7 40.3 35.6
Employment 49.0 49.3 49.8 46.9 45.9 45.6
New Orders/Business 51.5 55.3 47.7 46.3 42.2 38.3
Stocks/Inventories 48.6 51.7 46.2 46.0 42.2 43.5
Supplier Deliveries 51.8 48.4 48.4 47.2 45.8 41.6

BNZ – BusinessNZ PSI Time Series

January 2019 – June 2024

International Results

J.P. Morgan Global Manufacturing PSITM

03 Jul 2024
53.1
USA
55.3
UK
52.1
Eurozone
52.8
China
51.2
Japan
49.4
Australia
51.2
NZ
40.2

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PSI Releases

Same same

September's result for New Zealand’s services sector remained the same as August, although still firmly in contraction mode, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for September was 45.7 (A PSI reading above 50.0 indicates that...

Slow crawl

Activity in New Zealand’s services sector inched its way higher during August, although still firmly in contraction territory, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for August was 45.5 (A PSI reading above 50.0 indicates that...

Relative progress

Activity in New Zealand’s services sector for July showed some improvement after a horrendous June result, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for July was 44.6 (A PSI reading above 50.0 indicates that the service sector is...

Bottom of the Barrel

Activity in New Zealand’s services sector dropped to its lowest level of activity for a non-COVID lockdown month since the survey began, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for May was 43.0 (A PSI reading above 50.0 indicates...

Struggle street

New Zealand’s services sector continued to contract further in April, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for April was 47.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

BNZ – BusinessNZ
Performance of
Composite Index

40.5

GDP-Weighted Index

40.9

Free-Weighted Index

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) saw the two options for measuring the PCI continue to drop.

The June GDP-Weighted Index (40.5) decreased a further 2.6 points from May to again reach its lowest ever level for a non-COVID lockdown month, while the Free-Weighted Index (40.9) decreased a further 3.3 points to be at its lowest level since November 2008.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Jun 2023 Feb 2024 Mar 2024 Apr 2024 May 2024 Jun 2024
GDP-Weighted Index 50.1 52.1 46.9 45.5 43.1 40.5
Free-Weighted Index 49.5 50.9 46.4 47.1 44.2 40.9

BNZ – BusinessNZ PCI Time Series

January 2020 – June 2024

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