New Zealand’s services sector showed early signs of stabilisation in April, with the Performance of Services Index (PSI) improving to 48.9, up from 46.2 in March 2026.
The April 2026 reading, updated on 17 May 2026, moves the index closer to the 50-point threshold that separates contraction from expansion, suggesting that conditions in the services industry may be beginning to recover after a weaker March. While the PSI remains below 50 and still signals an overall contraction, the month-on-month increase points to a moderating downturn in activity.
Market participants and analysts will now be watching upcoming data closely to see whether April’s improvement marks the start of a sustained recovery in New Zealand’s services sector or a temporary rebound within a still-fragile environment.
