FX.co ★ New Zealand Services Activity Swings to Expansion

The BusinessNZ Performance of Services Index (PSI) in New Zealand climbed to 51.5 in December 2025, improving from 46.9 in November. This marks a return to expansion, concluding the longest contraction period recorded since the survey's inception. However, the index still lags behind its long-term average of 52.8. Out of the five sub-indices, three showed expansion: New Orders/Business reached 52.5, ending four months of contraction, followed by Activity/Sales at 52.2, and Stocks/Inventories at 51.9. Employment remained slightly contracted at 49.6. Despite the overall expansion, negative sentiment persisted, although it decreased to 50.4% in December from 52.9% in November and 54.1% in October. Respondents continued to express concerns over weak demand and confidence, high living and operational costs, and Christmas-related shutdowns, which have been cited as the main challenges affecting the services sector.