New Zealand’s BusinessNZ Performance of Services Index (PSI) rose to 48.9 in July 2025 from 47.6 in June, signaling a slower pace of decline but still marking the sixth consecutive month of contraction. The reading remained well below the survey’s long-term average of 52.9. Among the sub-indexes, Activity/Sales (47.5) continued to contract, while New Orders/Business (50.0) showed no change. Stocks/Inventories (51.4) expanded for the second straight month, but Employment (47.1) stayed in contraction for the 20th month in a row. Negative comments from businesses accounted for 58.5% of responses in July, easing from 66.2% in June and 65.6% in May. Service sector firms cited weak sales, reduced spending, and subdued confidence amid cost-of-living pressures, elevated inflation, high interest rates, and sluggish economic conditions. Additional challenges included seasonal downturns, adverse weather, rising costs, staffing shortages, and global uncertainty.