BNZ – BusinessNZ
Performance of
Services Index

Solid territory – PSI

13 Apr, 2016
54.8
March
-1.9
expanding
slower rate

New Zealand’s services sector experienced slower levels of expansion in March according to the BNZ – BusinessNZ Performance of Services Index (PSI).
 
The PSI for March was 54.8. This was 1.9 points lower than February, and the lowest level of expansion since November 2014 (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 easing expansion levels should not undermine the fact that the sector is still in positive and solid territory.

“While overall activity was not as high compared with recent months that came close to the 60-point mark, the sub-indices that underpin the main result are all still positive, along with expansion across the country”.
 
“Overall, given the fact that over 73% of comments received were still along a positive line confirms the sector remains in good heart”.
 
Regarding the March result, BNZ Senior Economist Craig Ebert said that “when the data is smoothed, it becomes clear over the last few months that momentum in the PSI has slowed, since a high point late last year. Yet it’s far from being slow as March is still running above the historical average of 53.9.”

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

Smoothing over the last few months it becomes clear that momentum in the Performance of Services Index (PSI) has slowed, since a high point late last year. Yet it’s far from being slow.

Read more  

QSBO

Much like the PSI over recent months, the latest NZIER Quarterly Survey of Business Opinion has also suggested something of a slowdown in New Zealand’s services sector.

Read more  

Housing

More so than the QVNZ data, the Real Estate Institute’s results for March were robust. Sales jumped a seasonally adjusted 5%, in spite of the early Easter.

Read more  

Credit

Household credit expanded a seasonally adjusted 0.6% in February, just like it did in January, and December. This nudged up its annual growth to 7.6%, from 7.5%.

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 Mar
2015
Nov
2015
Dec
2015
Jan
2016
Feb
2016
Mar
2016
BNZ – BusinessNZ PSI 57.8 59.4 58.5 55.4 56.7 54.8
Activity/Sales 60.3 62.1 61.7 58.0 60.0 59.6
Employment 54.7 54.9 53.5 50.9 53.6 53.0
New Orders/Business 61.7 64.0 63.7 57.0 60.9 57.0
Stocks/Inventories 59.4 56.6 54.9 54.4 55.2 52.9
Supplier Deliveries 54.2 57.3 54.8 55.0 53.4 51.3

BNZ – BusinessNZ PSI Time Series

March 2011 – March 2015

International Results

J.P. Morgan Global Manufacturing PSITM

05 Apr 2016
51.4

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 a lower level of expansion during March.

The March GDP-Weighted Index (54.8) decreased 1.7 points from February, while the Free-Weighted Index(55.0) dropped 1.9 points. The decrease in both combined index options was due to the manufacturing and services indices both experiencing lower rates of expansion.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Mar
2015
Nov
2015
Dec
2015
Jan
2016
Feb
2016
Mar
2016
GDP-Weighted Index 57.4 58.5 58.2 55.9 56.5 54.8
Free-Weighted Index 56.9 57.2 57.9 57.4 56.9 55.0

BNZ – BusinessNZ PCI Time Series

March 2011 – March 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