April’s PSI reading of 48.9 marks a second monthly contraction, driven by elevated fuel costs and shipping disruptions.
New Zealand’s services sector remained in contraction for April, with the BNZ-BusinessNZ Performance of Services Index at 48.9, up from March’s 46.2 but still below the 50 expansion threshold. Businesses cited fuel price spikes and disruptions in the Strait of Hormuz as primary headwinds.
The prior month’s reading of 46.2 had marked the first contraction since January 2023. While new orders expanded at 51.2, supplier deliveries slumped to 46.6, and micro-businesses recorded a sub-index of 44.4, contrasting with larger firms at 55.5.
Analysts noted the modest improvement may signal either resilience or persistent economic weakness, with no clear shift toward recovery yet evident.