FX.co ★ New Zealand Services Activity Remains in Contraction

New Zealand’s BusinessNZ Performance of Services Index (PSI) increased to 48.3 in September 2025, up from 47.6 in August. However, it still lies considerably below the long-term average of 52.9, marking the 19th straight month of contraction. Within the sub-index categories, both Activity/Sales (improving from 46.2 to 47.8) and New Orders/Business (rising from 47.8 to 49.6) experienced gains since August, yet persist in contraction status. Conversely, the employment sub-index continued to decline, dropping to 47.8 from 48.3. Despite the slight dip in the share of negative feedback, which decreased to 58.0% in September from 59.6% in August, service providers are still facing significant challenges. These challenges arise from weak economic conditions characterized by low consumer confidence, reduced discretionary spending, and the pressures of high living costs that are negatively impacting demand.