New Zealand’s services sector experienced a notable contraction in May 2025, as indicated by the Performance of Services Index (PSI) which fell to 44.0. This marks a significant decrease from April’s reading of 48.1, and underscores growing challenges within the services industry in the current economic climate.
The PSI, a key economic indicator reflecting the health of New Zealand’s service sector, has now fallen further away from the 50.0 mark which denotes the line between expansion and contraction. This decline suggests a contracting environment as service providers face obstacles ranging from Adjustments in consumer spending to increased operating costs.
Updated on 15 June 2025, the data paints a concerning picture of the service sector’s performance. Businesses and policymakers alike will be closely watching future readings to gauge the potential for recovery or further downturn in New Zealand's service-oriented economy. Stakeholders may need to consider strategic adjustments and supportive measures to bolster this crucial component of the national economy.
