BNZ – BusinessNZ
Performance of
Services Index

Tale of two islands for service sector activity – PSI

4 May, 2011

The recent Christchurch earthquake has led to a clear divide in the level of activity between the two main islands, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for March was 50.8. This was down 0.2 points from February, and the same as the January 2011 result. A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining. The average PSI value for 2009 was 48.8, while for 2010 it was 53.2.

BusinessNZ chief executive Phil O’Reilly said that like its sister survey the PMI, the PSI also showed a clear distinction in activity levels between the North and South Islands.

“While the significant drop in activity for the Canterbury/Westland region is unsurprising, it is also important to note that the flow on effects of the earthquake extend to other areas of the South Island, with the Otago/Southland region also being negatively affected. Respondent comments from the deep south confirm that the earthquake has been the largest inhibitor on activity, with new business/orders and activity drying up.

“The newly established BNZ – BusinessNZ Performance of Composite Index (PCI), which combines the results of both the PSI and PMI, also reinforces the fact that despite the significant drop in activity in the South Island, the relative healthy level of activity in the North Island is keeping the index in positive territory for now.

BNZ senior economist Craig Ebert said that just like the PMI, the PSI showed a dent in the southern region post-earthquake, but was able to narrowly miss dipping into negative territory thanks to it being healthy enough beforehand.

“Industry-wise, despite dips in expected areas post-quake – such as retail and accommodation, the overall employment index has improved since last year. This, combined with similar results in the PMI and other surveys, suggests New Zealand’s unemployment rate is not blowing out as some had feared.”

Both the Northern (54.6) and Central (57.5) regions continued to show relatively healthy levels of expansion, with the later recording its highest value since March 2010. In contrast, both the Canterbury/Westland (39.5) and Otago/Southland (39.5) regions experienced a significant dive in activity, with the former recording its first sub-40 result.

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:
Phil O’Reilly 04 4966552 or Craig Ebert 04 4746799

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

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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