BNZ – BusinessNZ
Performance of
Services Index

Struggle street

13 May, 2024
47.1
April
-0.1

Monthly Change

Contracting
Faster Rate

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 it is declining). This was down 0.1 points from March and the lowest level of activity for the sector since January 2022.

BusinessNZ chief executive Kirk Hope said while the April result was all but the same as March, the sub-index results outlined a difficult time for the sector as a whole. Although Activity/Sales (46.5) improved slightly, New Orders/Business (47.1) continued to fall backwards, while Employment (47.1) dropped to its lowest result since February 2022. Supplier Deliveries (47.6) also dropped to its lowest point since November 2022.

The proportion of negative comments from businesses continued to march upwards over April (66.3%), compared with 63.0% in March and 57.3% in February. A noticeable proportion of respondents noted the current difficult economic times, along with lingering inflationary issues.

BNZ’s Senior Economist Doug Steel said that “combining today’s weak PSI with last week’s PMI yields a composite reading that would be consistent with GDP tracking below year earlier levels into the middle of this year. That is what we expect and, if anything, the combined index suggests some downside risk to our forecasts”.

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

No bounce

The Performance of Services Index (PSI) failed to bounce in April. At 47.1, it was marginally lower than the 47.2 it had slumped to in March.

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Weakness prevalent

Within the broad sector some service industries have been weak or weakening for an extended period. Retail trade falls into that category and remains exceptionally depressed as household spending restraint continues.

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Demand down

Weak demand was most obvious in April’s PSI new orders index at 47.1. This is well below 50, a bit lower than March’s already weak 47.9, and now 10 full percentage points below its long-term average.

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Not good for GDP nor employment

Combining today’s weak PSI with last week’s PMI yields a composite reading that would be consistent with GDP tracking below year earlier levels into the middle of this year.

Read more

Doug Steel

Doug Steel

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 Apr 2023 Dec 2023 Jan 2024 Feb 2024 Mar 2024 Apr 2024
BNZ – BusinessNZ PSI 53.7 48.8 51.9 52.4 47.2 47.1
Activity/Sales 56.8 47.1 52.6 52.4 44.8 46.5
Employment 50.7 47.3 48.3 49.2 49.9 47.1
New Orders/Business 52.8 50.9 51.7 55.3 47.9 47.1
Stocks/Inventories 57.6 51.5 53.1 52.0 46.6 46.6
Supplier Deliveries 54.3 50.1 48.5 48.6 48.6 47.6

BNZ – BusinessNZ PSI Time Series

January 2019 – April 2024

International Results

J.P. Morgan Global Manufacturing PSITM

06 May 2024
52.7

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

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...

Over the line

New Zealand’s services sector recorded expansion in November, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for November was 51.2 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is...

BNZ – BusinessNZ
Performance of
Composite Index

45.9

GDP-Weighted Index

47.6

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 saw somewhat contrasting results over April.

The April GDP-Weighted Index (45.9) decreased a further 1.2 points from March, while the Free-Weighted Index (47.6) rose 1 point.  However, both were still in contraction.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Apr 2023 Dec 2023 Jan 2024 Feb 2024 Mar 2024 Apr 2024
GDP-Weighted Index 50.8 48.5 51.5 52.1 47.1 45.9
Free-Weighted Index 48.7 47.0 50.0 50.8 46.6 47.6

BNZ – BusinessNZ PCI Time Series

January 2019 – April 2024

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