New Zealand BusinessNZ Performance of Services Index fell from 42.6 to 40.2 in June, marking the lowest level for the sector outside a COVID lockdown month since the survey began in 2007.
BusinessNZ chief executive Kirk Hope noted that after a poor May result, June’s figures “simply got worse”. Activity/Sales dropped to 35.6 and New Orders/Business fell to 38.3, both hitting record lows for non-lockdown months. Employment decreased to 45.6, the lowest since February 2022, while Supplier Deliveries declined to 41.6, the lowest since March 2022.
Negative comments rose to 67.0% in June, up from 65.4% in May and 66.3% in April, with respondents citing recessionary pressures.
BNZ Senior Economist Doug Steel observed, “The Performance of Services Index has been well below average for more than a year. Moreover, the weakness appears to be accelerating.”
