In a promising development for New Zealand's economy, the Performance of Services Index (PSI) inched upwards in September 2025, indicating a potential recovery in the service sector. The index, which serves as a key economic indicator of the health of the service industry, rose from the previous month's figure of 47.5 to reach 48.3.
This marginal increase, reported on 12 October 2025, signifies a shift towards stabilization after the sector faced prolonged challenges. While the PSI remains below the 50 threshold that separates expansion from contraction, the improvement suggests that the downturn in New Zealand's service activities is starting to ease.
Analysts continue to monitor these trends closely, as a sustained upward trajectory could signal more robust economic growth moving forward. The service sector, which forms a substantial part of the New Zealand economy, is pivotal to national economic health and recovery. The rise in the PSI is thus a hopeful sign, reflecting improved sentiment and activity within the industry.
