New Zealand’s services sector slipped deeper into contraction in November, according to the latest BNZ–BusinessNZ Performance of Services Index (PSI).
The PSI fell to 46.9 in November, down 1.5 points from October and marking the weakest reading since May 2025. The result remains well below the long-run survey average of 52.8, reinforcing the sector’s ongoing softness. (A reading above 50 indicates expansion, while below 50 signals contraction.)
All five sub-indices remained in contraction:
- Activity/Sales the weakest at 45.8
- New Orders/Business edged closer to stabilisation at 49.3 but remained below the breakeven mark
- Employment slipped further to 46.4.
Businesses continued to cite a challenging economic backdrop, pointing to subdued consumer confidence, high living costs, inflation, elevated interest rates and restrained spending as key drags on activity.
BNZ senior economist Doug Steel warned that, when combined with the Performance of Manufacturing Index (PMI), the composite indicators suggest downside risks to even modest economic growth expectations in early 2026
