New Zealand’s BusinessNZ Performance of Services Index eased from 51.7 to 50.9 in January, slipping further below the survey’s historical average of 52.8. While the index remains marginally in expansion territory, the details reveal a mixed picture. Activity and sales improved from 52.5 to 54.2, but employment deteriorated from 49.6 to 49.1, staying firmly in contraction. New orders edged lower from 52.1 to 51.8, suggesting demand momentum is softening at the margin.
Sentiment remains subdued. The proportion of negative comments rose sharply to 58.7%, up from 50.4% in December and 52.9% in November. Respondents cited seasonal disruptions from Christmas–New Year holidays, fewer enquiries, and a prolonged post-holiday lull. Elevated living and operating costs continue to weigh on business confidence, underscoring fragile recovery conditions.
Still, BNZ Senior Economist Doug Steel struck a more constructive tone, noting that data since late 2025 has reinforced confidence that positive momentum can be sustained. While services growth is hardly robust, the economy appears to be expanding gradually.
