BNZ – BusinessNZ
Performance of
Services Index

Solid service sector activity continues – PSI

16 Apr, 2012

The service sector continued to show healthy signs of expansion in 2012, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for March was 53.9. While this was down 1.9 points from February, it was still up on the January result, along with an overall solid average result of 54.4 for the first quarter of 2012. A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining. The 2012 March result was also the second highest value recorded for that month since the survey began in 2007.

BusinessNZ chief executive Phil O’Reilly said that exceeding the February result would have been ideal, but the fact that expansion did not slip dramatically provides some encouraging signs for the sector.

“While the PSI has been in expansion for 20 consecutive months, the results have largely been flat with one good month followed by another struggling to cling on to positive territory. The results for the first three months provide more optimism for sustained growth than we have seen over the last couple of years.

“Looking beyond the main PSI result, the proportion of positive comments has continued upwards, going from under half in January, to 56.1% for February and now 58.6% in March. In contrast, the sharp fall in the sub-index of activity/sales held back the potential for stronger overall growth, although continued robust values for new orders should assist sales in the months ahead.”

BNZ senior economist Craig Ebert said “March’s PSI result builds on February’s uplift, which along with the services elements of the NBNZ and QSBO business surveys reinforces the notion that the services sector is in a solid growth pulse.”

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for March showed the two options for measuring the PCI still producing healthy signs of activity.  The GDP-Weighted Index (54.5) decreased 1.5 points from February, while the Free-Weighted Index (55.3) fell 2.3 points. However, the March result for the former was the third highest since June 2010 and for the later the second highest since April 2010.

Four of the five sub-indices showed expansion in March. This was again led by new orders/business (60.0), which was largely unchanged from the previous month. Activity/sales (51.6) dropped 6.3 points to end up at its lowest point since December 2011. Employment (52.4) remained stable compared with the previous month, while stocks/inventories (51.6) dipped slightly but remained in expansion. Supplier deliveries (48.3) fell back into contraction after two months in expansion.

Unadjusted activity was expansionary in three of the four regions. Both the Central (60.0) and Canterbury/Westland (65.6) regions built on their activity levels in February, while the Northern region (51.5) lost some of its gains from the previous month. The Otago/Southland region (49.3) slipped back into slight contraction after four consecutive months in expansion. This was exclusively due to very weak activity/sales levels for the month.

Click here to view the March PSI & PCI
Click here to view the PSI time series data
Click here to view the PCI time series data

For media comment: Kathryn Asare 021 555 744 or Craig Ebert 04 474 6799

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