BusinessNZ Performance of Services Index (PSI) still in contraction at 48.3
- sector has been in contraction for 19 consecutive months
- prior 47.6
- well below 52.9, the average over the history of the survey
An improvement from August then, but contraction still.
BusinessNZ’s CEO, Katherine Rich:
- proportion of negative comments for September (58.0%) was down on August (59.6%) and July (58.5%)
- negative comments received show that the services sector continues to struggle under weak economic conditions, with low consumer confidence, reduced discretionary spending, and high living costs curbing demand
- falling sales, fewer new contracts, and cautious clients delaying projects amid rising costs and ongoing uncertainty about the broader economy
BNZ’s Senior Economist Doug Steel
- “in isolation, the combined PMI/PSI activity indicator warns of economic growth struggling to gain traction”.
Earlier, manufacturing also still in contraction:
