BNZ – BusinessNZ
Performance of
Services Index

Upwards and onwards – PSI

18 Sep, 2017
57.3
August
+1.3
expanding
faster rate

New Zealand’s services sector experienced a lift in expansion during August, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for August was 57.3, which was 1.3 points higher than 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 after the 2.3 point dip in expansion during July, the movement upwards towards more solid expansion was positive to see.

“Looking at the sub-indices, the two key values of activity/sales (62.9) and new orders/business (63.1) picking up pace assisted the overall result. In addition, the proportion of positive comments (66.9%) lifted well above the 60-point mark compared with July”.

BNZ Senior Economist Craig Ebert said that “melded with the PMI, the latest PSI forms a picture of rude growth in the NZ economy, overall. Indeed, the composite index continues to point to annual GDP growth running in the order of 3 to 4%”.

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

The Performance of Services Index (PSI) acquitted itself very well in August. It posted a seasonally adjusted reading of 57.3, from 56.0 in July. In this, like we saw in the PMI, there appeared little in the way of election nerves.
Read more

GDP Implications

Melded with the PMI, the latest PSI forms a picture of rude growth in the NZ economy, overall. Indeed, the composite index continues to point to annual GDP growth running in the order of 3 to 4%.
Read more

Retail

Retail trade will surely be another of the strong points of the Q2 GDP accounts. However, this was flattered by international visitors for the Lions’ rugby tour (mainly June) and World Masters Games (April).
Read more

Housing

The REINZ data for August continued to look slow to slower, driven by Auckland, although they were arguably not as soft as expected, especially when considering the impending election.
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
2016
Apr
2017
May
2017
Jun
2017
Jul
2017
Aug
2017
BNZ – BusinessNZ PSI 58.0 53.0 58.5 58.3 56.0 57.3
Activity/Sales 61.2 52.1 62.6 59.2 55.8 62.9
Employment 54.7 55.7 54.1 54.0 55.0 52.2
New Orders/Business 60.2 55.7 63.0 63.8 60.2 63.1
Stocks/Inventories 56.2 46.2 54.4 54.7 52.4 52.8
Supplier Deliveries 57.2 47.8 54.9 56.6 52.0 51.4

BNZ – BusinessNZ PSI Time Series

August 2013 – August 2017

International Results

J.P. Morgan Global Manufacturing PSITM

06 Sep 2017
54.1

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 again both improve during August.
 
The August GDP-Weighted Index (57.3) increased 1.4 points from July, while the Free-Weighted Index (57.9) rose 1.7 points.  The increase in expansion levels for both the manufacturing and services sector led to both measures picking up expansion during August.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Aug
2016
Apr
2017
May
2017
Jun
2017
Jul
2017
Aug
2017
GDP-Weighted Index 57.5 53.7 58.4 57.8 55.9 57.3
Free-Weighted Index 56.4 54.9 59.0 57.4 56.2 57.9

BNZ – BusinessNZ PCI Time Series

August 2013 – August 2017

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