BNZ – BusinessNZ
Performance of
Services Index

Struggle street – PSI

15 Mar, 2021
49.1
February
+1.1

Monthly Change

contracting
slower rate

Activity in New Zealand’s services sector remained in contraction for a fourth consecutive month, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for February was 49.1, which was up 1.1 points from January (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  However, it was still well below the long term average of 53.8 for the survey.

BusinessNZ chief executive Kirk Hope said that while the slight pick-up in activity to levels seen in December was obviously a positive step, the sector remains below the critical 50.0 mark.  The last time the sector was in contraction for four consecutive months was the first half of 2009.

“The slower return to business as usual post holidays was compounded by the two separate lockdown periods in mid and late February, with Auckland hit hardest.  This has meant the key sub-indices of Activity/Sales (50.8) and New Orders/Business (50.3) were both lethargic over February.”

BNZ Senior Economist Craig Ebert said that “when simply averaging across all responses to the PSI and PMI surveys gives a composite reading of 51.6 for February.  But re-weighting for the fact services comprise around 70% of the economy and the composite index yields 49.7. With this, we remain decidedly cautious on GDP growth for Q1.”

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

New Zealand’s services sector continues to struggle. This remains the abiding message from the Performance of Services Index (PSI). While it did improve in February, at 49.1 (from 48.0 in January) it was still below the breakeven mark of 50.
Read more

Covid Restriction Impacts?

Having said this, there is good reason to believe the PSI can bounce in March, because February was beset by the latest rash of lockdowns, on account of community cases of Covid19 found in Auckland.
Read more

In Tune with Electronic Transactions Clanger

These parts of the PSI, as it turned out, were in keeping with the weakness that occurred in February’s electronic card transactions. These fell a nasty 3.2%, to be 8.1% down on year-ago levels. And the culprits were clear.
Read more

The Importance of Services in GDP

February’s PSI has also been important in indicating the generalities to growth, not just some specifics. In dallying at 49.1 it offset the decent news we continued to see in the PMI, which, at 53.3 for February was running around normal.
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 Feb
2020
Oct
2020
Nov
2020
Dec
2020
Jan
2021
Feb
2021
BNZ – BusinessNZ PSI 52.5 50.8 46.7 49.2 48.0 49.1
Activity/Sales 54.8 50.0 45.6 51.1 46.9 50.8
Employment 50.3 49.7 49.3 52.8 46.6 50.9
New Orders/Business 55.5 57.2 52.0 50.7 53.3 50.3
Stocks/Inventories 52.2 51.8 45.8 48.3 49.7 45.9
Supplier Deliveries 44.9 43.7 39.1 39.7 41.6 40.8

BNZ – BusinessNZ PSI Time Series

February 2017 – February 2021

International Results

J.P. Morgan Global Manufacturing PSITM

03 Mar 2021
52.8

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]

PSI Releases

Struggle street

New Zealand’s services sector continued to contract further in April, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for April was 47.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

Lost momentum

New Zealand’s services sector fell back into contraction during March, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for March was 47.5 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that...

Path of expansion

New Zealand’s services sector continued its path of expansion in February, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for February was 53.0 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Green shoots?

New Zealand’s services sector climbed back into expansion for the start of 2024, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for January was 52.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

Activity on holiday

New Zealand’s services sector fell back into contraction during December, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for December was 48.8 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

BNZ – BusinessNZ
Performance of
Composite Index

49.7

GDP-Weighted Index

51.6

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 again show contrasting results in February.

The February GDP-Weighted Index (49.7) rose 0.4 points in February.  However, the Free-Weighted Index (51.6) decreased 1.3 points.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Feb
2020
Oct
2020
Nov
2020
Dec
2020
Jan
2021
Feb
2021
GDP-Weighted Index 52.8 50.9 47.7 49.3 49.3 49.7
Free-Weighted Index 54.0 51.6 50.7 49.5 52.9 51.6

BNZ – BusinessNZ PCI Time Series

February 2017 – February 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