New Zealand's services sector, which accounts for about two-thirds of the economy, expanded at a slower pace in September, with all five sub-indexes posting a weaker result.
The BNZ-BusinessNZ performance of services index declined to a seasonally adjusted 54.1 in September from an eight-month high of 57.9 in August. Still, all of the five sub-indexes remained above the 50 level that separates contraction from expansion.
"The Performance of Services Index (PSI) suggests service sector growth is tempering," Bank of New Zealand senior economist Doug Steel said in his report. "We wouldn't read too much into one month's result. Expansion, albeit at a touch slower pace, remains widespread with positive readings across the major headline indices covering sales, employment, and new orders as well as across all industries and regions and most firm sizes."
Steel noted that the latest month's result may have been impacted by above normal rainfall in the period, school holidays, or moderating house sales.
The survey showed large firms experienced a contraction in the month, with a reading of 46.4, and also had a weaker reading in last week's Performance of Manufacturing Index.
