New Zealand Services PMI for July plunges into contraction to 47.8 (prior 50.1) | Forexlive

Business New Zealand’s Performance of Services Index for July 2023 comes in at 47.8

• June’s reading was revised from 49.6 to 50.1
• July’s 47.8 is the lowest level of activity for the sector since January 2022
• the long-term average is 53.5

BusinessNZ comment:

• “The further fall into contraction during July also saw another lift in the proportion of negative comments, which rose to 67%, compared with 55.6% in June and 49.4% in May. Overall, negative comments received were strongly dominated by a general downturn in the economic conditions/slowing economy, as well as ongoing increased costs”.

BNZ comment:

• “the results all point to a sharp drop in demand in July, significantly accelerating the slowing trend that had been evident for many months”