BNZ – BusinessNZ
Performance of
Services Index

Under Par – PSI

26 Jan, 2021
49.2
December
+2.5
contracting
slower rate

Activity in New Zealand’s services sector improved from the previous month, but still recorded contraction, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for December was 49.2, which was up 2.5 points from November (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  The PSI averaged 47.0 over 2020.

BusinessNZ chief executive Kirk Hope said that the December result typified a difficult year for the sector, with half the year spent in contraction.

“While June and July showed a post-lockdown recovery, the remainder of 2020 displayed either soft expansion or contraction.  The two key sub-indices of activity/sales and new orders/business failed to show any consistent pattern of expansion, while the remaining sub-indices spent a significant proportion of time under the key 50.0 mark”.

BNZ Senior Economist Craig Ebert said that “activity indicators such as these have had their work cut out lately, in trying to nail GDP to the nearest percent. In any case, the composite index is consistent with our view that NZ real GDP will be broadly flat over the six months to March 2021”.

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

After bobbing up to the surface back in June and July, New Zealand’s Performance of Services Index (PSI) has since been treading water. This was affirmed in December’s reading.
Read more

Industry

By industry, Transport & Storage remained the most obvious weak spot, with an (unadjusted) index of 31.3, from 33.3 in November. Could this (and the noted weakness in supplier deliveries) be yet another manifestation of the supply problems we keep hearing about?
Read more

QSBO Parallels

As it turned out, the latest PSI gelled with the services component of last week’s NZEIR Quarterly Survey of Business Opinion (QSBO), in that the latter was still reserved in its reports of activity regarding the trailing three months.
Read more

GDP Growth Touch and Go

It wasn’t just the PSI that was labouring in December. So too was the Performance of Manufacturing Index (PMI), which stumbled to 48.7, from 55.3 in November. Combined, the PSI and PMI painted a picture of GDP struggling to expand, after the latter’s massive rebound in the September quarter.
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
2019
Aug
2020
Sep
2020
Oct
2020
Nov
2020
Dec
2020
BNZ – BusinessNZ PSI 50.9 47.3 50.1 50.8 46.7 49.2
Activity/Sales 50.6 45.7 52.4 50.1 45.8 51.3
Employment 50.7 47.8 49.2 49.9 49.3 51.7
New Orders/Business 53.4 48.5 55.0 57.2 52.0 50.6
Stocks/Inventories 50.6 48.5 45.0 51.5 45.3 47.9
Supplier Deliveries 48.1 45.0 42.8 43.6 39.1 39.5

BNZ – BusinessNZ PSI Time Series

December 2016 – December 2020

International Results

J.P. Morgan Global Manufacturing PSITM

06 Jan 2021
51.8

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.

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 PCI show almost identical results during December.

The December GDP-Weighted Index (49.2) increased 1.5 points from November.  The Free-Weighted Index (49.1) decreased 1.4 points after showing slight expansion in November.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Dec
2019
Aug
2020
Sep
2020
Oct
2020
Nov
2020
Dec
2020
GDP-Weighted Index 50.8 47.8 50.6 50.9 47.7 49.2
Free-Weighted Index 50.3 49.2 52.1 51.4 50.5 49.1

BNZ – BusinessNZ PCI Time Series

December 2016 – December 2020

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