BNZ – BusinessNZ
Performance of
Services Index

Top service – PSI

19 May, 2014

Activity in the services sector continued its upwards momentum during April, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for April was 58.9. This was up 0.4 points from March, and the highest level of activity since November 2007 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining). The PSI has now been above 58.0 points for three of the last four months.

BusinessNZ chief executive Phil O’Reilly said that the further upwards lift in expansion for the sector was another sign of the ongoing economic growth the country is currently experiencing.

“In recent months, the key sub-indicators of activity/sales and new orders/business have provided a strong platform for the overall result. However, both the March and April results have shown a more consistent spread of expansion, as stocks and supplier deliveries have also increased.”     

BNZ senior economist Craig Ebert said this month’s PSI shows a consistent growth pulse by both region and industry.

“Overall it suggests New Zealand’s service sector is maintaining expansion at least as forceful as it was late last year. It also makes up for the slight under-performance of the PMI, although that was probably compromised by the timing of holidays.”

All five main sub-indices were again in expansion during April. New orders/business (65.7) continued its upwards momentum, while activity/sales (62.2) also recorded a consecutive post-60 value. Employment (53.4) slipped 0.9 points from March, while supplier deliveries (55.8) and stocks/inventories (55.6) recorded similar levels of expansion.

Activity was positive and consistent across all of the country in April. In the North Island, the Northern region (58.1) dipped slightly in expansion levels compared with the previous month, while the Central region (60.0) broke through the 60 point mark for the first time in 2014. In the South Island, the Canterbury/Westland region (60.3) increased 1.8 points from March, while the Otago/Southland region (56.3) decreased 3.1 points from the previous month, although remained in solid expansion.

The seasonally adjusted BNZ – BusinessNZ Performance of Composite Index or PCI (which combines the PMI and PSI) for April saw the two options for measuring the PCI show slightly different results from the previous month, although both remain at very healthy levels of activity. The GDP-Weighted Index (58.5) produced the same result as the previous month, while the Free-Weighted Index (57.3) dipped 0.9 points. The fact that manufacturing sector saw a decrease in the level of expansion during April meant the Free-Weighted Index experienced a stronger change than the GDP-Weighted Index.

Click here to view the April 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 04 496 6552 or Craig Ebert 04 474 6799

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

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

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