NZ: Returning to Contraction

New Zealand Services Sector Returns to Contraction in February

According to the latest BNZ – BusinessNZ Performance of Services Index (PSI), New Zealand's services sector slipped back into contraction in February. The PSI registered a score of 48.0, signaling a decline in activity since any figure below 50.0 reflects contraction, while readings above 50.0 indicate growth. This marks a drop of 2.7 points compared to January and falls short of the long-term survey average of 52.8.

Katherine Rich, CEO of BusinessNZ, noted that the sector’s brief period of growth lasted only two months, with February’s figures mirroring the contraction levels observed at the close of 2025. All major sub-indices also showed similar downward trends.