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flag New Zealand’s services sector grew slightly in January 2026, with inflation still above target.

flag New Zealand’s services sector expanded slightly in January 2026, with the BusinessNZ Performance of Services Index at 50.9, down from December but still above the 50 threshold indicating growth. flag Activity and sales rose, though employment and inventories contracted. flag Business sentiment weakened, with nearly 59% of comments negative, citing high costs and weak demand. flag The manufacturing sector also grew, supporting signs of economic recovery. flag Inflation remains above target at 3.1%, raising potential future rate hike concerns, though no immediate changes are expected.

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