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2025-09-15 08:47:05
[Weak New Zealand services data suggests a slowdown in economic recovery] New Zealand's services sector contracted for the 18th consecutive month in August, suggesting the economic rebound in the third quarter may be slower than expected. Data showed that the performance of services index fell to 47.5 from 48.9 in July. The index has not been above 50 since February last year, a sign of expansion. Data released this week is expected to show that GDP shrank in the second quarter. But the Reserve Bank of New Zealand and most economists expect the economy to rebound in the second half of the year starting in the third quarter as lower interest rates stimulate consumer spending and business investment. Doug Steel, senior economist at the Bank of New Zealand, said: "Across the economy, we still believe that overall signs of a turning point have appeared. However, the ensuing rebound will take longer than currently expected, which is a very real risk."
