BNZ – BusinessNZ
Performance of
Services Index

Solid performer – PSI

23 Jan, 2018
56.0
December
-0.5
expanding
slower rate

New Zealand’s services sector ended the year in solid expansion territory, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for December was 56.0, which was 0.5 points lower than November (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 2017 ended up with expansion averaging out at 56.9, slightly up on the 56.6 for 2016.  In addition, a key sub-index of new orders showed strong expansion with an average over 60 points for 2017.

“While the proportion of positive comments for December (60.0%) was down from November (68.7%), there was a heavy seasonal factor at play, with Christmas and the holiday period being a key influence”.

BNZ Senior Economist Craig Ebert said that “this above-average outcome was doubly significant, considering the Performance of Manufacturing Index (PMI) decelerated sharply in December. Had the PSI done so too, we would have been much more concerned that the economy might be choking back a bit, following the election”.

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

The PSI

The Performance of Services Index (PSI) remained patently expansive for December. Index-wise it came in at 56.0, compared to the 56.5 level it strengthened to in November. This above-average outcome was doubly significant, considering the Performance of Manufacturing Index (PMI) decelerated sharply in December.
Read more

QSBO Services

It wasn’t just December’s PSI that suggested New Zealand’s services sector continues to expand well, post the transition to the new government. So too did last week’s NZIER Quarterly Survey of Business Opinion (QSBO).
Read more

Merchants

Separate to services, the merchants’ category of the QSBO went a bit below par in Q4 – whether about trading activity over the last three months, or expectations for the coming three.
Read more

Housing

Much still hinges on how the housing market pans out. The Real Estate Institute data for December failed to provide much direction, however.
Read more

Craig Ebert

Craig Ebert

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 Dec
2016
Aug
2017
Sep
2017
Oct
2017
Nov
2017
Dec
2017
BNZ – BusinessNZ PSI 58.3 57.0 55.9 55.7 56.5 56.0
Activity/Sales 63.2 62.7 56.8 58.2 60.4 58.4
Employment 54.1 52.1 53.3 51.1 50.7 55.8
New Orders/Business 61.1 62.9 60.2 60.3 60.8 60.4
Stocks/Inventories 53.3 52.7 52.7 51.1 58.6 50.9
Supplier Deliveries 57.0 52.7 53.5 52.8 53.1 50.1

BNZ – BusinessNZ PSI Time Series

December 2013 – December 2017

International Results

J.P. Morgan Global Manufacturing PSITM

04 Jan 2018
53.9

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 experiencing a decrease in expansion during December.

The December GDP-Weighted Index (55.4) decreased 1.1 points from the previous month, while the Free-Weighted Index (54.0) fell 3.5 points.  Given the larger drop in manufacturing expansion, this translated into a stronger fall in expansion via the free-weighted method.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Dec
2016
Aug
2017
Sep
2017
Oct
2017
Nov
2017
Dec
2017
GDP-Weighted Index 57.9 57.2 56.1 55.9 56.5 55.4
Free-Weighted Index 57.1 57.9 56.9 56.7 57.5 54.0

BNZ – BusinessNZ PCI Time Series

December 2013 – December 2017

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