New Zealand Services PMI Eases to 3-Month Low

New Zealand’s BusinessNZ Performance of Services Index dropped to 46.0 in March 2026 from a downwardly revised 47.6 in the previous month, marking the second straight month of contraction in services, due to the impact of the Iran war. The latest reading was also the lowest since May 2025, lower than the average of 52.8 over the history of the survey, as all sub-indexes deteriorated. Activity/sales (44.6 vs 47.5 in February), new orders (45.7 vs 48.8), employment (46.4 vs 47.0), and stocks (46.2 vs 46.5) all weakened. Meanwhile, the delivery times index edged down (47.3 vs 48.5), indicating the impact of the Middle East conflict. " The industries that deal mainly in discretionary spending (accommodation, cafes & restaurants; and cultural, recreational & personal services) have been especially impacted, and this is likely to reflect a lack of consumer confidence," BusinessNZ’s CEO, Katherine Rich, said.

New Zealand’s BusinessNZ Performance of Services Index fell to 48.0 in February 2026 from a downwardly revised 50.7 in the previous month, marking the first contraction in services activity since last November and underscoring the fragility of economic momentum. Most sub-indices weakened, including activity/sales (47.9 vs 53.8 in January), new orders slipped (49.3 vs 51.6), employment (47.2 vs 49.0), and stocks (46.7 vs 49.4). Meanwhile, the delivery times index edged down (48.7 vs 49.4), indicating faster supplier deliveries. Looking ahead, the March survey will be the first to capture the potential business impact of the turmoil in the Middle East, meaning hopes for a near-term rebound may prove premature.

New Zealand’s BusinessNZ Performance of Services Index eased to 50.9 in January 2026 from 51.7 in the prior month, reflecting subdued confidence as holiday closures and seasonal shutdowns slowed enquiries and extended the post-Christmas lull. High living and operating costs added further pressure. Still, the sector managed to stay in expansion for the first month of the year, following a prolonged period of contraction. Of the five sub-indices, two remained in growth: activity/sales (54.2 vs 52.5 in December), while new orders slipped (51.8 vs 52.7). In contrast, stocks fell after growing previously (49.7 vs 52.0), and employment weakened further (49.1 vs 49.6).