New Zealand Services PSI Returns to Growth at 50.6

New Zealand's services sector returned to expansion in June, the BNZ-BusinessNZ Performance of Services Index showed. The index rose to 50.6 from 48.0 in May and 48.9 in April, the first reading above the 50.0 breakeven mark since January 2026.

BusinessNZ chief executive Katherine Rich said it was heartening to see the index edge back above breakeven after a lengthy stretch of contraction. She characterised the improvement as tentative, contrasting it with the more pronounced gain recorded this month in the Performance of Manufacturing Index. The parts of the services sector under the most pressure remain those most exposed to discretionary household spending, such as hospitality and personal services, where consumers are directing money toward essentials like fuel and food rather than optional purchases, Rich said.

Within the index, New Orders was the strongest sub-index at 53.0. Deliveries also moved into expansion territory at 51.2. Stocks/Inventories and Activity/Sales came in at 49.9 and 49.3 respectively. Employment, the weakest of the group, was at 48.8. Rich said the pattern shows the sector's return to growth remains narrowly based.