New Zealand’s services sector moved back into contraction in February, with the Performance of Services Index (PSI) dropping to 48.0, down from 50.7 in January 2026. The latest reading, updated on 15 March 2026, points to a renewed slowdown in activity across the country’s service industries.
The fall below the 50-point threshold, which separates expansion from contraction, suggests weakening demand or caution among businesses and consumers after a modest expansion at the start of the year. The pullback from January’s 50.7 reading indicates that any early momentum in 2026 has been fragile, raising concerns about the resilience of New Zealand’s service-based economy.
With services making up a significant share of New Zealand’s overall economic output, the February PSI result could signal softer near-term growth prospects. Market participants and policymakers are likely to monitor upcoming survey data closely to assess whether this downturn is a temporary fluctuation or the start of a more persistent cooling in the sector.