NZ Services Sector Returns to Growth, PSI Hits 50.6

New Zealand's services sector expanded in June for the first time since January. The BusinessNZ Performance of Services Index rose from 48.0 to 50.6, crossing the 50-point threshold that separates growth from contraction. The reading followed a similar rebound in the manufacturing index, pointing to broader improvement after a prolonged soft patch.

New orders provided the strongest lift, climbing from 48.2 to 53.0. Supplier deliveries also moved back into expansion, reaching 51.2. Activity and sales improved to 49.3. Employment edged to 48.8, and inventories rose to 49.9. All three remained below the expansion threshold.

BusinessNZ Chief Executive Katherine Rich said sectors tied to discretionary spending, including hospitality and personal services, continue to struggle as households prioritise essentials under persistent cost-of-living pressure.

BNZ Head of Research Stephen Toplis said the combined rebound in manufacturing and services suggests economic growth could soon approach 2.0%. He described the recovery as resuming rather than accelerating, reinforcing the view that the pre-oil shock trajectory is intact.