BNZ – BusinessNZ
Performance of
Services Index

Softening in September – PSI

17 Oct, 2016

54.1

September

-3.8

Monthly Change

expanding

slower rate

New Zealand’s services sector experienced a softening in expansion across all main indicators, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for September was 54.1. This was 3.8 points down from August, and very similar to the 54.3 recorded in July (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).

BusinessNZ chief executive Kirk Hope said that while the September result still indicated healthy expansion, comments from respondents tended to show a few seasonal factors at play that gave pause to expansion.

“A number of those who provided negative comments tended to focus on current weather conditions, as well as school holidays affecting operations. This culminated in the proportion of negative comments rising from 34.8% in August to 39.3% in September.”

Regarding the latest PSI results, BNZ Senior Economist Doug Steel said “looking through the monthly volatility, there has been some trend slowing in the PSI over recent months. It appears firm’s difficulty in finding staff is one of the obviously many factors involved”.

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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

Slower service

The Performance of Services Index (PSI) suggests service sector growth is tempering. The PSI slowed to a middling 54.1 in September from a very strong 57.9 in August.
Read more

Are large firms telling us something?

Expansion, albeit at a touch slower pace, remains widespread with positive readings across the major headline indices covering sales, employment, and new orders as well as across all industries and regions and most firm sizes.
Read more

Economic growth robust, but is it slowing?

Combining the PSI and PMI, into a composite (PCI) indicator, suggests ongoing robust economic growth into year’s end. But the hint, from the PCI, that growth may be slowing is in contrast to the general strengthening in other recent business (and consumer) confidence surveys
Read more

View full BNZ Services Snapshot

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.

View website

PSI Time Series Table

The results are seasonally adjusted.

National Indicies	Sep 2015	May 2016	Jun 2016	Jul 2016	Aug 2016	Sep 2016
BNZ – BusinessNZ PSI	59.2	56.9	56.5	54.3	57.9	54.1
Activity/Sales	63.2	60.0	57.8	57.3	61.4	57.3
Employment	54.0	54.7	54.5	53.7	54.2	51.6
New Orders/Business	63.5	60.1	58.3	57.4	60.4	56.0
Stocks/Inventories	57.0	52.5	53.5	51.5	55.8	53.3
Supplier Deliveries	55.7	52.7	55.4	47.6	56.3	51.7

View the Time Series Data

BNZ – BusinessNZ PSI Time Series

September 2011 – September 2015

International Results

J.P. Morgan Global Manufacturing PSI^TM

05 Oct 2016

51.5

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]

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New Zealand’s services sector continued to show slight contraction during March, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for March was 49.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

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New Zealand’s services sector slipped back into contraction during February, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for February was 49.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Over the line

After 10 consecutive months of contraction, New Zealand’s services sector exhibited slight expansion during January, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for January was 50.4 (A PSI reading above 50.0 indicates that the...

No Christmas Joy

New Zealand’s services sector exhibited a faster rate of contraction during December, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for December was 47.9 (A PSI reading above 50.0 indicates that the service sector is generally...

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BNZ – BusinessNZ
Performance of
Composite Index

54.6

GDP-Weighted Index

55.9

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 both experience a decrease in expansion from August to September.

The September GDP-Weighted Index (54.6) decreased 2.9 points from August, while the Free-Weighted Index (55.9) fell 0.8 points. The stronger decrease in the GDP-Weighted result was mainly due to a weaker PSI value for September.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies	Sep 2015	May 2016	Jun 2016	Jul 2016	Aug 2016	Sep 2016
GDP-Weighted Index	58.6	57.0	56.8	54.6	57.5	54.6
Free-Weighted Index	57.2	57.5	57.1	55.5	56.7	55.9

View the Time Series Data

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

BNZ – BusinessNZ
Performance of
Services Index