BNZ – BusinessNZ
Performance of
Services Index

Step by step – PSI

25 Jan, 2022
49.7
December
+2.5
contracting
slower rate

Activity levels in New Zealand’s services sector continued to improve during the last month of 2021, although still remained in overall contraction, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for December was 49.7 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  This was up 2.5 points from November, and close to the no change level of 50.0.

BusinessNZ chief executive Kirk Hope said that the ongoing move towards climbing out of contraction is encouraging, but illustrates the difficult period that many service scetor businesses are facing at present. 

“On a positive note, the key sub-index of Activity/Sales (50.7) recorded its first positive activity level since July, while New Orders/Business (51.7) recorded consecutive expansion levels.  The return to expansion for the sector as a whole will largely depend on these two indicies displaying higher and consistent expansion in the coming months.”

BNZ Senior Economist Craig Ebert said that “the PSI and PMI combined leaves us cautious as to what to expect for the bounce in GDP for Q4, and momentum into the start of 2022. Of course, the immediate factor is how the economy handles Omicron circulating in the community, under the new traffic light system. Movement into the Red setting impacts gathering limits, which is clearly important to many service industries.”

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

Four months on from Delta’s big hit in August, the Performance of Services Index (PSI) has still not quite shaken its contractive tone.  Still, it did improve to 49.7 during December, from the disappointing 47.2 it posted for November.
Read more

QSBO comparators

Then again, last week’s Quarterly Survey of Business Opinion (QSBO) showed service-related firms reporting extreme difficulty in finding staff to begin with (notwithstanding an abidingly strong intention to increase employment levels, nevertheless).
Read more

PSI componentry

While the PSI was about flat for December, overall, it was full of positives and negatives in its details. By industry, for instance, there was a significant acceleration in Cultural, Recreation & Personal – to an unadjusted 72.8, from 30.0 in November and 18.1 in October. This is consistent with the country moving into the traffic light system of COVID management in December.
Read more

GDP implications

As it turned out, December’s PSI couldn’t match the reasonable expansion that the PMI registered for the month (with its 53.7).  As such, the PSI and PMI combined leaves us cautious as to what to expect for the bounce in GDP for Q4, and momentum into the start of 2022.
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
2020
Aug
2021
Sep
2021
Oct
2021
Nov
2021
Dec
2021
BNZ – BusinessNZ PSI 48.2 35.4 46.8 45.4 47.2 49.7
Activity/Sales 50.4 25.5 43.1 44.3 47.2 50.7
Employment 51.6 49.3 51.4 50.1 50.5 49.2
New Orders/Business 50.6 32.4 47.8 47.5 53.1 51.7
Stocks/Inventories 47.7 47.6 50.6 46.2 47.1 51.0
Supplier Deliveries 40.0 26.9 41.4 36.7 37.1 49.5

BNZ – BusinessNZ PSI Time Series

December 2017 – December 2021

International Results

J.P. Morgan Global Manufacturing PSITM

06 Jan 2022
54.6

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 December PCI both return to expansion.

The December GDP-Weighted Index (50.5) increased 2.8 points from November, while the Free-Weighted Index (52.9) rose 3.0 points.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Dec
2020
Aug
2021
Sep
2021
Oct
2021
Nov
2021
Dec
2021
GDP-Weighted Index 48.4 36.0 47.4 46.5 47.7 50.5
Free-Weighted Index 48.9 37.4 49.2 50.4 49.9 52.9

BNZ – BusinessNZ PCI Time Series

December 2017 – December 2021

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