BNZ – BusinessNZ
Performance of
Services Index

Sizzling September – PSI

19 Oct, 2015
59.3
September
+0.8
expanding
faster rate

Activity in New Zealand’s services sector continued its upwards momentum, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for September was 59.3.  This was 0.8 points higher than August, and the highest result since November 2007 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).

BusinessNZ chief executive Phil O’Reilly said that any time activity is at its highest level for nearly eight years it represents a very favourable period of growth for the sector.

“With activity/sales (63.2) close to record levels and new orders/business (63.1) also remaining well above the 60-point mark, the sector is in very good health at present, with little sign of any slow down”.

“The proportion of positive comments in September (65.8%) was well up from August (59.2%), with those who stipulated positive influences citing a variety of factors, including new products/markets, increased demand and seasonal factors at play”.

BNZ Senior Economist Doug Steel said “the positivity in the PSI adds to the improvement we saw in its cousin for the manufacturing sector (PMI) last week. Together these surveys add support to our view that economic growth will be stronger in the second half of 2015 than it was over the first half”.

BNZ - BusinessNZ PSI

Time Series Data

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

Services Landscape

Services

New Zealand’s Performance of Services Index (PSI) addedeven more oomph in September. It has been firmlypositive all year but this month puts theindex at its highest level since 2007.
Read more  

Faster Growth?

The positivity in the PSI adds to the improvement we sawin its cousin for the manufacturing sector (PMI) last week.
Read more  

Spending Up

After something of a pause for breath over the Junequarter, consumer spending looks to have re-acceleratedover the course of the September quarter.
Read more  

Tourism and Accommodation

The resurgence in New Zealand’s tourism industry shouldby now be well known. We expect September’s foreignvisitor arrival numbers toregister 10% annual growth.
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 Indices Sep
2014
May
2015
June
2015
July
2015
Aug
2015
Sep
2015
BNZ – BusinessNZ PSI 57.6 57.9 58.1 56.7 58.5 59.3
Activity/Sales 60.4 62.5 60.2 60.5 61.7 63.2
Employment 54.7 56.1 54.4 53.5 53.8 53.7
New Orders/Business 61.1 63.0 62.7 60.6 64.3 63.1
Stocks/Inventories 50.0 50.5 53.5 51.2 52.1 57.1
Supplier Deliveries 52.5 50.5 55.7 54.3 55.0 55.2

BNZ – BusinessNZ PSI Time Series

September 2011 – September 2015

International Results

J.P. Morgan Global Manufacturing PSITM

05 Oct 2015
53.3

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

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 both experience another increase in expansion for September.

The GDP-Weighted Index (58.7) increased 0.7 points, building on the increase in August.  The Free-Weighted Index (57.7) rose 0.5 points, which was its highest result since September 2014. Both results again indicated stronger expansion compared with the J.P.Morgan Global Combined index of 52.8 for the same month.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Sep
2014
May
2015
Jun
2015
Jul
2015
Aug
2015
Sep
2015
GDP-Weighted Index 57.7 56.9 57.8 56.2 58.0 58.7
Free-Weighted Index 58.3 55.6 57.2 55.9 57.2 57.7

BNZ – BusinessNZ PCI Time Series

September 2011 – September 2015

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