BNZ – BusinessNZ
Performance of
Services Index

Ups and downs – PSI

14 Sep, 2020
46.9
August
-7.5
contracting
previously expanding

Activity in New Zealand’s services sector returned to contraction mode for August, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for August was 46.9, which was down 7.5 points from July (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  

BusinessNZ chief executive Kirk Hope said that unlike its sister survey for the manufacturing sector, the PSI returned to negative territory on the back of the level 3 lockdown in the Auckland region.

“The lockdown was felt throughout the country, as no region managed to show expansion during August.  Following previous patterns, a drop down to level 2 should reignite activity.  Barring a further outbreak in a major region, we would hope the sector gets back into expansion for the last quarter of 2020.

BNZ Senior Economist Craig Ebert said that “when the PSI and PMI are combined into a Composite Index (PCI), they hardly expunge the notion that GDP is on course to rebound markedly in Q3.”

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

With New Zealand shifting back up COVID alert levels on 12 August, it was no surprise to see August’s Performance of Services Index (PSI) dip. Its seasonally adjusted index fell to 46.9, from 54.4 in July.
Read more

Regional Reach

With greater Auckland spending the second half of August under level-3 restriction, there was little news in the fact the PSI’s Northern zone saw a further sag in its (unadjusted) index – to 43.6, from 46.0.
Read more

Industry Impacts

The big hit to Otago/Southland’s PSI in August gels with the fact Aucklanders were largely prevented from travelling to other parts of the country over the second half of August.  And Otago is a popular destination during the winter, especially for its famed ski fields.
Read more

GDP Scoping

Given the obvious reason for their wobbles in August, the PSI (46.9), and PMI (50.7), still seemed consistent with an underlying improvement in the economy, from the huge hit it took back in March/April.
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 Aug
2019
Apr
2020
May
2020
Jun
2020
Jul
2020
Aug
2020
BNZ – BusinessNZ PSI 54.4 26.1 37.2 54.4 54.4 46.9
Activity/Sales 54.6 11.1 33.3 58.7 54.9 43.8
Employment 52.9 42.1 40.2 45.3 49.7 47.0
New Orders/Business 56.2 16.6 36.2 59.7 55.8 47.1
Stocks/Inventories 53.5 45.9 46.7 52.4 55.8 49.0
Supplier Deliveries 50.9 25.0 41.2 53.2 56.7 45.2

BNZ – BusinessNZ PSI Time Series

August 2016 – August 2020

International Results

J.P. Morgan Global Manufacturing PSITM

03 Sep 2020
51.9

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 both experience contraction for August.

The August GDP-Weighted Index (47.4) decreased 7.7 points from July, while the Free-Weighted Index (48.8) fell 8.3 points.

PCI Time Series Table

The results are seasonally adjusted.

National Indices Aug
2019
Apr
2020
May
2020
Jun
2020
Jul
2020
Aug
2020
GDP-Weighted Index 53.7 25.9 37.5 54.7 55.1 47.4
Free-Weighted Index 51.8 24.2 38.0 56.1 57.1 48.8

BNZ – BusinessNZ PCI Time Series

August 2016 – August 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