In an encouraging turnaround for New Zealand's service sector, the Performance of Services Index (PSI) has jumped to 51.5 in December 2025, up from 46.9 in the previous month of November. This significant increase marks a shift from contraction to expansion, as any PSI reading above 50 indicates growth in the sector. The data, updated on 19 January 2026, highlights a rejuvenation in New Zealand's services landscape as the country navigates through post-pandemic challenges.
The rebound suggests a regaining of momentum and strengthening consumer confidence, which are crucial as the service sector is fundamental to New Zealand's economy. Analysts attribute the growth to multiple factors, including a seasonal uptick during the holiday period, better management of supply chain disruptions, and a resurgence in domestic tourism.
This positive movement in the PSI is likely to bring optimism to businesses within the services industry, ranging from hospitality to retail. It also sets the stage for a hopeful economic outlook in 2026, with stakeholders keenly watching for whether this upward trend will sustain in the upcoming months.
