BNZ – BusinessNZ
Performance of
Services Index

Keeping momentum

14 Nov, 2022
57.4
October
+1.5

Monthly Change

expanding
faster rate

Expansion levels for New Zealand’s services sector lifted in October, according to the BNZ – BusinessNZ Performance of Services Index (PSI).

The PSI for October was 57.4 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below 50.0 that it is declining).  This was up 1.5 points from September, and clearly above the long-term average of 53.6 for the survey.

BusinessNZ chief executive Kirk Hope said that the survey has now remained above the 55-point mark for three consecutive months, with the two key sub-indexes of New Activity/Sales (61.0) and New Orders/Business (59.9) remaining in a very healthy position. In addition, Employment (57.0) experienced its highest level of activity since April 2021.

In line with an improvement in expansion levels, the proportion of positive comments for October (55.4%) was up on September (47.9%). Seasonal influences were mentioned by a number of respondents, including improved weather conditions and upcoming planning before Christmas.

BNZ Senior Economist Craig Ebert said that “the latest NZ PSI and PMI results chime with the narrative of spending shifting back to services, away from durables. However, they also highlight a divergence to what’s been going on globally, with respect to services industries”.

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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

PSI

New Zealand’s Performance of Services Index (PSI) kept a strong pace in October. The relative strength of its 57.4 outturn was shown in that it wasn’t far from 60.0 – a level the NZ PSI rarely pumps up to.

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Industry features

The leading services industry – by a long chalk now – is Cultural, Recreational & Personal. As big as this was back in September, with 80.0, it got more gargantuan in October, with 90.6.

Read more

Counter to the PMI

In being so strong in October, the PSI has, once again, importantly offset a soft spot in the PMI, to sustain a robust pulse for economic growth, overall.

Read more

Global desynchronisation

The latest NZ PSI and PMI results chime with the narrative of spending shifting back to services, away from durables. However, they also highlight a divergence to what’s been going on globally, with respect to services industries.

Read more

View full BNZ Services Snapshot
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.

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PSI Time Series Table

The results are seasonally adjusted.

National Indicies Oct 2021 Jun 2022 Jul 2022 Aug 2022 Sep 2022 Oct 2022
BNZ – BusinessNZ PSI 45.3 54.9 54.4 58.6 55.9 57.4
Activity/Sales 44.9 55.9 55.0 67.5 59.6 61.0
Employment 49.9 52.6 49.0 51.4 50.8 57.0
New Orders/Business 48.2 61.2 53.7 66.9 62.4 59.9
Stocks/Inventories 46.3 53.9 53.4 59.8 54.9 56.5
Supplier Deliveries 36.8 49.1 47.8 49.9 49.8 52.5
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BNZ – BusinessNZ PSI Time Series

January 2016 – October 2022

International Results

J.P. Morgan Global Manufacturing PSITM

04 Nov 2022
49.2

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PSI Releases

Treading water

New Zealand’s services sector continued to display contraction for a sixth consecutive month, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for July was 48.9 (A PSI reading above 50.0 indicates that the service sector is generally...

Ongoing contraction

New Zealand’s services sector displayed contraction for a fifth consecutive month, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for June was 47.3 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

Service with a slump

New Zealand’s services sector continued to show further decline in activity during May, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for May was 44.0 (A PSI reading above 50.0 indicates that the service sector is generally expanding;...

Declining fortunes

New Zealand’s services sector showed further decline in activity during April, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for April was 48.5 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

Continued softness

New Zealand’s services sector continued to show slight contraction during March, according to the BNZ – BusinessNZ Performance of Services Index (PSI). The PSI for March was 49.1 (A PSI reading above 50.0 indicates that the service sector is generally expanding; below...

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BNZ – BusinessNZ
Performance of
Composite Index

56.5

GDP-Weighted Index

53.1

Free-Weighted 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 contrasting levels of expansion in October.

The October GDP-Weighted Index (56.5) increased 1.1 points from September, while the Free-Weighted Index (53.1) fell 1 point.

PCI Time Series Table

The results are seasonally adjusted.

National Indicies Oct 2021 Jun 2022 Jul 2022 Aug 2022 Sep 2022 Oct 2022
GDP-Weighted Index 46.5 54.4 54.4 58.2 55.4 56.5
Free-Weighted Index 50.8 52.5 54.4 57.5 54.1 53.1
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BNZ – BusinessNZ PCI Time Series

January 2016 – October 2022

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