New Zealand's service sector shows signs of revival with the Performance of Services Index (PSI) registering a 50.4 reading in the latest economic data released on 16 February 2025. This represents a significant shift from the previous 48.1 reading, indicating a return to expansion territory for the country's services industry.
The improvement comes as businesses and consumers adjust to the recent economic shifts, with the index crossing the pivotal 50.0 mark, which traditionally separates expansion from contraction. The latest figures suggest growing confidence amongst service providers and a potential upturn in service output.
Economists are cautiously optimistic, viewing the rise as a positive sign that the sector is responding favorably to recent policy changes and global economic conditions. However, with ongoing uncertainties in the international market, all eyes will be on the upcoming data releases to assess if this upward trajectory can be sustained.
