Services Sector Steady as New Zealand BusinessNZ PSI Holds Firm

New Zealand's services sector remained in expansion territory for the third consecutive month, according to the BusinessNZ Performance of Services Index (PSI) released in July. The PSI reading held steady at 50.6, unchanged from the previous month.

The stability is a positive sign for the economy, as the services sector accounts for a significant portion of New Zealand's GDP and employment. While the pace of growth may be modest, the index has remained above the crucial 50 threshold, indicating sustained growth.

Among the sub-indices that make up the PSI, new orders and employment remained in expansion territory, suggesting that businesses are maintaining their staffing levels despite economic uncertainties. Activity/sales and supplier deliveries also contributed positively, while stocks of finished goods contracted, which may indicate that demand is absorbing inventory.