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Expandarama! New Zealand services PMI December 2025: 51.5 (prior 47.2)
Key Takeaways (30s Read)
New Zealand's services sector shows recovery, signaling growth momentum heading into 2026.
New Zealand's services sector has emerged from contraction, evidenced by the BNZ – BusinessNZ PSI rising to 51.5 in December 2025 from 47.2 in November. This marks the first expansion since February 2024, driven primarily by new orders and business activity. However, employment remains a concern with a sub-index at 49.6, indicating caution in hiring despite improved activity. Overall, the report underscores mixed sentiments, with companies facing challenges such as weak demand and rising costs, though improved consumer confidence and tourism flows provide some encouragement. Economists suggest that coupled with the robust manufacturing sector, this rebound signals a firmer GDP growth into the end of 2025 and reduces downside risks heading into early 2026.
AI Analyst
AI Opinion
"The recovery in New Zealand's services sector is a significant indicator of domestic economic vitality. The sharp improvement after 21 months of contraction points to building stability within the economy. While new orders and business activity have risen, employment remains a constraint, reflecting firms' cautious outlook regarding future demand. However, the tourism sector's recovery and increased new contracts add a layer of optimism. This data is interpreted as a signal of renewed growth heading into 2026, particularly as consumer confidence improves, suggesting a broader economic recovery in New Zealand."
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