Story perspectives

New Zealand's Services Sector Declines, Recession Looms

9/15/2025

Summary

Story summary

New Zealand's services industry contracted for the 18th consecutive month in August, with the Performance of Services Index at 47.5, reflecting economic difficulties.
Economists predict a GDP contraction in Q2, with BNZ estimating a 0.5% decline and the Reserve Bank a 0.3% drop.
ANZ notes improving indicators may suggest growth in Q3, potentially averting another recession.
Unemployment stands at 5.2%, the highest in five years, with a slight increase expected before a decline.
The Reserve Bank plans to reduce the Official Cash Rate to 2.5% by year-end to boost the economy.

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Story summary

New Zealand's services industry contracted for the 18th consecutive month in August, with the Performance of Services Index at 47.5, reflecting economic difficulties.
Economists predict a GDP contraction in Q2, with BNZ estimating a 0.5% decline and the Reserve Bank a 0.3% drop.
ANZ notes improving indicators may suggest growth in Q3, potentially averting another recession.
Unemployment stands at 5.2%, the highest in five years, with a slight increase expected before a decline.
The Reserve Bank plans to reduce the Official Cash Rate to 2.5% by year-end to boost the economy.