New Zealand’s services sector showed signs of stabilization in April, although activity remained in contraction territory as businesses continued to grapple with rising fuel costs and disruption linked to the conflict in the Middle East. The BusinessNZ Services Performance Index improved from 46.2 to 48.9, but remains below the 50 expansion threshold.
Base notes were mixed but less subdued overall. Activity/sales rose from 44.7 to 48.9, while employment improved from 46.6 to 48.5. New Orders/Business provided the brightest signal, rising from 46.0 to 51.2 to return to expansion territory. However, supplier deliveries fell from 47.2 to 46.6, while inventories rose from 46.2 to 47.6.
BusinessNZ CEO Catherine Rich said more than two-thirds of survey respondents continued to report negative conditions, with many citing fuel prices as a major pressure point. She warned that the ongoing disruption to shipping through the Strait of Hormuz makes it difficult to envision a rapid return to sector-wide expansion.
Small companies seemed particularly vulnerable, with the small-cap sub-index at just 44.4, while medium-large companies outperformed at 55.5.
| component | He walks | April |
|---|---|---|
| Title PSI | 46.2 | 48.9 |
| Activity/Sales | 44.7 | 48.9 |
| employment | 46.6 | 48.5 |
| New orders/business | 46.0 | 51.2 |
| Stocks/Stocks | 46.2 | 47.6 |
| Supplier deliveries | 47.2 | 46.6 |
