Services Sector Expands for Third Straight Month

New Zealand's services sector has shown signs of improvement, but growth is still fragile and not yet spread across the wider economy. The BNZ-BusinessNZ Performance of Services Index (PSI) rose to 51.2 in August, its third consecutive month of expansion.

The result was the strongest since September 2023, matching the level reached in December 2025, but still below the long-term average of 52.7. BusinessNZ chief executive Katherine Rich noted that while the latest result is encouraging, 'there's clearly more ground to make up before we can call this a solid turnaround.'

The strongest component of the survey was new orders and business activity, which rose to 55.2, indicating continued improvement in demand.

However, employment remained below 50 at 49.4, suggesting staffing levels are still declining. Activity and sales also slipped back below the 50 breakeven mark in August.