FX.co ★ New Zealand Services PMI Contracts for Sixth Straight Month

In July 2025, New Zealand's BusinessNZ Performance of Services Index (PSI) experienced a slight uptick, reaching 48.9 from 47.6 in June. Although this indicates a slower decline, it still represents the sixth consecutive month of contraction, remaining considerably below the long-term survey average of 52.9. Within the sub-indexes, Activity/Sales saw continued contraction at 47.5. Meanwhile, New Orders/Business steadied at 50.0, indicating no movement. Stocks/Inventories expanded for the second month in a row, with a reading of 51.4, yet Employment continued its downward trend, remaining in contraction at 47.1 for the 20th consecutive month. In July, 58.5% of business feedback was negative, improving from 66.2% in June and 65.6% in May. Service sector companies pointed to weak sales, decreased spending, and reduced confidence, grappling with pressures from cost-of-living increases, persistent inflation, high interest rates, and sluggish economic conditions. Other hurdles included seasonal downturns, unfavorable weather, rising costs, staffing shortages, and global economic uncertainty.