New Zealand’s BusinessNZ Performance of Services Index (PSI) rose to 48.7 in October 2025 from 48.3 in September, but remained stuck in contraction for 20 straight months and stayed well below the long-term average of 52.8. Among the sub-indexes, Activity or Sales at 48.9 marked its strongest reading since January 2025, though New Orders or Business at 49.5 edged down from September. Employment at 48.8 climbed 0.9 points, reaching its highest level since March 2025. The share of negative comments in October at 54.1% eased from September’s 58.0% and August’s 59.6%. Feedback continued to highlight weak demand and softer customer spending amid the broader downturn, cost-of-living pressures, and low confidence. Rising operating costs, delays, competition, and project cancellations were also dragging on sales, slowing activity, and creating cashflow pressures.