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      New Zealand Services Sector Shows Modest Growth Amid Election Uncertainty

      New Zealand's services sector experienced modest growth for the fourth consecutive month in September, as indicated by the BNZ-BusinessNZ Performance of Services Index (PSI), which registered at 50.9. This figure is slightly down from August's 51.0 but above July's 50.5. A reading above 50 signifies expansion, although the growth remains limited, particularly when compared to the manufacturing sector, which has consistently reported stronger performance.

      The index reflects a mixed picture within the services sector. New orders and inventories were the strongest components, scoring 52.6 and 52.3 respectively, suggesting some positive momentum in demand. However, employment and supplier deliveries fell below the neutral mark at 49.8 and 49.4, indicating that businesses are hesitant to hire and invest further amid ongoing economic uncertainties.

      Concerns over the cost of living, fuel prices, interest rates, and the upcoming general election have contributed to a cautious business sentiment, with around 60% of respondents expressing negative views. BusinessNZ chief executive Katherine Rich noted that while the four-month expansion is encouraging, many firms are adopting a wait-and-see approach until the election outcome is clear. This caution may limit any potential recovery in the sector, regardless of the political landscape following the election.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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