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NZ services sector returns to growth as PSI rises above 50
The BNZ-BusinessNZ Performance of Services Index climbed to 50.6 in June from 48.0 in May, with New Orders and Deliveries leading while Employment lagged at 48.8.
New Zealand's services sector returned to expansion in June, according to the BNZ-BusinessNZ Performance of Services Index, which rose to 50.6 from 48.0 in May and 48.9 in April. The move back above the 50.0 breakeven line marks the first time the index has been in expansion since January 2026, signaling early stabilization after a prolonged soft patch.
BusinessNZ chief executive Katherine Rich said the improvement is encouraging but tentative, with the gains concentrated in New Orders and Deliveries. New Orders moved into expansion at 53.0, while Deliveries also expanded at 51.2.
The rest of the sub-indices stayed below breakeven, including Stocks and Inventories at 49.9 and Activity and Sales at 49.3, with Employment the weakest at 48.8. The pattern indicates the rebound is narrow-based and remains vulnerable to any renewed weakening in household spending.
Rich added that the sustainability of a more durable growth phase will depend on consumer confidence rebuilding, especially given ongoing softness in discretionary-exposed parts of services such as hospitality and personal services. Forexlive reports that consumers appear to be directing money toward essentials like fuel and food rather than optional purchases, underscoring the sensitivity of the sector to cost-of-living pressures.