New Zealand's services sector has shown signs of improvement as the Performance of Services Index (PSI) rose to 44.6 in August 2024. This marks a modest increase from the previous month's reading of 40.7, according to new data released on August 18, 2024.
The PSI is a critical measure of the health of the services sector, with a reading below 50 indicating contraction. While the sector remains in contraction territory, the rise suggests that conditions are starting to improve. The latest figures indicate that businesses within the services sector are beginning to recover from the challenges faced in previous months.
Economic analysts are cautiously optimistic about this upward trend, noting that sustained improvement in the PSI could herald a broader economic recovery for New Zealand. Observers will be closely monitoring upcoming readings to confirm whether this positive trajectory continues. For now, the increase in the PSI provides a glimmer of hope for the services sector and the broader New Zealand economy.
