New Zealand Services PMI2007-2021 Data | 2022-2023 Forecast | Calendar | Historical

The BusinessNZ Performance of Services Index in New Zealand sank to 35.6 in August of 2021 from a downwardly revised 55.9 in July, pointing to the second lowest level of activity ever, with the April 2020 result still the lowest during the national lockdown last year. The national lockdown was the sole influencing factor causing service sector activity levels to plunge into contraction. Sharp decreases were seen in activity (25.8 vs 61 in July), employment (49.2 vs 54.8), new orders (32.8 vs 60), stocks (48 vs 51.4) and supplier deliveries (26.8 vs 46.8). Even for those outside Auckland moving down alert levels to resume business activity, there will be residual effects at least through September with both uncertainty and lower alert level restrictions playing their part.

The BusinessNZ Performance of Services Index in New Zealand decreased to 57.9 in July of 2021 from a downwardly revised 58.4 in the previous month, but was still well above the overall average of 53.9 for the survey. BusinessNZ chief executive Kirk Hope said that the sector will continue to show above average results as long as the key sub-indices of Activity/Sales (63.6) and New Orders/Business (63.2) remain strong. The one sub-index that remains in contraction is Supplier Deliveries (47.6), although the July result is at its highest level since July 2020. BNZ Senior Economist Doug Steel said that "combined with last week’s blistering PMI employment reading of 58.3, it all sets up Q3 to be another strong quarter of employment growth and the nation’s unemployment rate continuing to press lower. This is good news if you are looking for a job, not so much if you are trying to find staff."

The Business NZ Performance of Services Index in New Zealand rose to 58.6 in June of 2021 from an upwardly revised 56.3 in the previous month, signalling a stronger expansion in the service sector. At the same time, the three-month average stood at 58.7, the second strongest quarter on record, only surpassed by the average seen in the quarter ending June of 2007. Main upward pressure came from New Orders/Business (66.1) and Activity/Sales (62.5). Businesses reported higher staffing levels (56.5), although struggles in hiring new employees were broad. Meanwhile, the more supply-focused indices, namely Stocks/Inventory (50.9) and Supplier Deliveries (46.2) remained weak. BusinessNZ Senior Economist Craig Ebert added that “the PSI and PMI signal a hefty rate of growth in economic activity (...) suggesting the economy is running headlong into even-worse capacity constraint, and, with it, serious inflation pressure”.

The Business NZ Performance of Services Index in New Zealand fell to 56.1 in May of 2021 from a record high of 61.2 in April. The reading still pointed to an expansion in the services sector, above the long term average of 53.9. New Zealand continues to follow global trends with strong New Orders/Business (62.1) and Activity/Sales (58.7). However, Supplier Deliveries (45.1) remains solidly in contraction. BNZ Senior Economist Doug Steel said that "while the current strength in the PSI (and PMI) says good things for economic growth over coming quarters, the obvious supply side stresses suggests significant upward pressure is building on inflation".