New Zealand's services sector continues to shrink, with the PSI at 47.5, marking 18 months of decline.

New Zealand's services sector contracted further in August, with the Performance of Services Index (PSI) dropping to 47.5, indicating an 18-month decline. Factors like high inflation, interest rates, and weakened consumer confidence are contributing to reduced spending and demand. Despite expectations of a recovery in the second half of the year, economists warn that the rebound could take longer than anticipated.