New Zealand Services Growth Eases in September

New Zealand’s BusinessNZ Performance of Services Index edged down to 50.9 in September 2026 from a downwardly revised 51.0 in August, marking the fourth consecutive month of expansion in the sector. The latest reading was down from an eight-month high in August, as growth in new orders eased (52.6 vs 54.8). Meanwhile, the sub-indices for stocks expanded faster (52.3 vs 50.9), while activity/sales returned to expansion (50.2 vs 49.2). By contrast, contractions were seen in supplier deliveries (49.4 vs 48.9) and employment (49.8 vs 49.4). The latest reading highlighted that cost-of-living pressures, interest rates, and election uncertainty remain front of mind for many. “What stands out to me is how much caution is still baked into the sector, as businesses are clearly in ‘wait-and-see’ mode with the election approaching, and that’s likely to keep a lid on any stronger lift until there’s more certainty,” BusinessNZ CEO Katherine Rich said.

New Zealand’s BusinessNZ Performance of Services Index rose to 51.2 in August 2026 from 50.6 in July, marking the third consecutive month of expansion in the sector and the fastest increase in eight months. The latest reading matched the December 2025 figure, which was the strongest growth since September 2023, 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,” BusinessNZ 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.