June’s PSI reading of 50.6 signals a fragile rebound in NZ’s services sector, supporting expectations for GDP growth near 2.0%.
New Zealand’s services sector returned to growth in June, with the Performance of Services Index climbing to 50.6 from 48.0 in May. The reading marks the first expansion since January, following a prolonged contraction, and aligns with a reported surge in manufacturing activity.
The improvement was narrow, driven primarily by new orders and deliveries, while employment remained subdued at 48.8. Hospitality and personal services, sensitive to discretionary spending, continued to lag, reflecting cautious consumer behavior amid cost-of-living pressures.
The data reinforces expectations for a modest pickup in GDP growth, though the recovery’s sustainability depends on easing inflation and rebuilding consumer confidence.