New Zealand Services Growth Hits 8-Month High

New Zealand’s BusinessNZ Performance of Services Index increased to 51.2 in August 2026 from 50.6 in July, marking the third expansion in the services sector since December 2025. It was the fastest increase since December 2025, as two of the five sub-indices remained in expansion territory, with new orders (55.2 vs 52.8) recording the strongest reading, followed by stocks (50.8 vs 51.7). Meanwhile, contractions were seen in supplier deliveries (49.0 vs 48.4), employment (49.4 vs 48.5), and activity/sales (49.4 vs 50.4). The latest reading highlighted that cost-of-living pressures, interest rates, and election uncertainty remain front of mind for many. Sentiment was notably softer than in July, with 60.8% of comments negative. “It’s encouraging to see the PSI post its strongest reading since returning to growth, though at 51.2 this remains a fragile recovery. With three of the five sub-indices still below 50," BusinessNZ’s CEO, Katherine Rich, said.

New Zealand’s BusinessNZ Performance of Services Index decreased to 50.6 in July 2026 from 50.9 in June, marking the second expansion in the services sector since December 2025. Two of the five sub-indices remained in expansion territory, with new orders (52.6 vs 53.3) recording the strongest reading, although at a softer pace, followed by stocks (51.6 vs 50.3) and activity/sales, which rebounded (50.5 vs 49.7). Meanwhile, contractions were seen in supplier deliveries (48.5 vs 51.2) and employment (48.5 vs 48.8). The latest reading highlighted that cost-of-living pressures, fuel and petrol prices, and rising interest rates remain front of mind for many, with a number also citing uncertainty ahead of the election. Sentiment was notably softer than in manufacturing, with 64% of comments negative.

New Zealand’s BusinessNZ Performance of Services Index rose to 50.6 in June 2026 from an upwardly revised 48.0 in May, marking the first expansion in the services sector since January. Two of the five sub-indices returned to expansion territory, with new orders (53.0 vs 48.2) recording the strongest growth, followed by supplier deliveries (51.2 vs 49.8). The remaining sub-indices stayed in contraction territory, although at a slower pace: activity/sales (49.3 vs 45.1), stocks (49.9 vs47.8), and employment (48.8 vs 48.7). " The recovery is tentative. The parts of the sector doing it hardest remain those most exposed to discretionary spending, like hospitality and personal services, where households are still holding onto their money for fuel, food and other essentials. A return to sustained growth depends on consumer confidence rebuilding, and that is unlikely while cost-of-living pressures remain this prominent,” said BusinessNZ’s CEO, Katherine Rich.