New Zealand's services sector is evidencing concerning signs of a downturn, as reflected in the latest Performance of Services Index (PSI) released for November 2025. The index, which provides a measure of the strength of the services sector in the country, recorded a decline from its previous standing. In October, the PSI stood at 48.4, tipping just below the 50-point threshold that separates contraction from expansion. November's report sees this figure falling further to 46.9.
This sustained drop in the PSI is indicative of an ongoing contraction within the sector, spanning two consecutive months and accentuating the challenges the services industry is facing. The downward movement suggests a reduction in business activity and demand within New Zealand's services providers, potentially prompting concerns about economic health, especially as services account for a significant portion of the nation's economic output.
Economists and industry stakeholders are closely monitoring these developments. As of December 14, 2025, with the updated data now publicly available, discussions on potential policy responses and economic stimulus measures are anticipated to become focal points as New Zealand seeks to counteract these negative trends and stabilize the sector.
