BNZ – BusinessNZ PSI (November 2016)

New Zealand’s services sector experienced a further pick-up in expansion during November, according to the BNZ - BusinessNZ Performance of Services Index (PSI). The PSI for November was 57.9.  This was 1.3 points up from October, and the highest result since August (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 despite challenges for a number of businesses in recent weeks, the healthy level of overall activity for November was a welcome result. “Comments from respondents show that for some, the recent earthquakes have presented obvious challenges.  However, seasonal factors such as the lead in to Xmas and improving weather conditions have helped make the November result the second equal highest in 2016." BNZ Senior Economist Doug Steel said that "the November PSI was a picture of strength, and contributes to the broad based growth the service sector has shown over 2016". View PSI Time Series Data Services Landscape Tis (More Than) The Season November’s Performance of Services Index (PSI) is a picture of strength. After looking a little slower a couple of months ago, the PSI re-stretched its legs up to 57.9 in November and well above its long term average of 54.1. Read more  → Broad Based Growth Service sector strength has been broad based. In the year to November, service industries have had an average PSI reading well above the breakeven 50 mark. Read more  → Capacity Pressures Interestingly, PSI employment is only marginally above average. This is despite the demand indicators like sales and new orders being so strong. Read more  → Firm Demand Signals Christmas quarter sales look to be shaping up well judging by the ongoing strength in the PSI distribution sector indicators. Although these figures are not seasonally adjusted, retail, at 60.7, is above its November average. Read more  → View full BNZ Services Landscape