FX.co ★ New Zealand Services PMI Contracts for 5th Straight Month

In June 2025, New Zealand's BusinessNZ Performance of Services Index increased to 47.3 from 44.1 in May. Even with this rise, the index still signals contraction for the fifth consecutive month, trailing behind its long-term average of 52.9. The services sector is grappling with several challenges, including diminished consumer confidence, elevated living costs, and ongoing economic unpredictability. Factors such as reduced household expenditure, persistent inflation, high interest rates, and government spending cuts are exerting significant pressure on the sector. Seasonal elements, like winter and reduced tourist numbers, have further suppressed demand. Examining the sub-indexes: Activity/Sales stood at 44.5, and New Orders/Business was at 48.8, both indicating contraction. Interestingly, Stocks/Inventories recorded an expansion at 50.6 for the first time since November 2024. Nonetheless, Employment remained in the negative zone at 47.2, marking its 19th month of downturn, and highlighting continuing labor market challenges within the sector.