New Zealand Services PMI Drops to 11-Month Low

New Zealand's BusinessNZ Performance of Services Index fell sharply to 44.0 in May 2025 from 48.1 in April, marking its lowest level since June 2024.

This was the fourth consecutive month of contraction and well below the survey’s long-term average of 53.0.

Among the sub-indices, Activity/Sales dropped to 40.1 and New Orders/Business to 43.2—both also at their lowest levels since June last year.

Employment slipped further into contraction at 47.2, while Deliveries remained unchanged at 45.7.

Negative sentiment also deepened, with 65.6% of comments in May reflecting pessimism—up from 61.8% in April and 56.7% in March.

Businesses cited reduced demand and falling revenues, largely driven by rising costs, economic uncertainty, and weak consumer confidence.

Many reported customers cutting back on spending, delaying decisions, and reacting cautiously to inflation, interest rates, and broader market instability.