KEY POINTS:
A measure of activity in the services sector shows it to be only just continuing to expand.
The monthly Bank of New Zealand - Business NZ Performance of Services Index was down to 50.8 in March, 4.8 points lower than in February and the lowest reading since the survey started in April last year.
A reading above 50 indicates activity is expanding, while below 50 that it is contracting.
The employment breakout from the overall index went into decline for the first time, with a reading of 48.9.
The new orders/business breakout was still positive at 52.9, but that was the lowest level recorded and a sharp fall from 61.4 in February. December and January were the only other months since last April that the category reading dropped below 60.
Business NZ chief executive Phil O'Reilly said comments from respondents continued to focus on negative sentiments.
Many comments referred to customers, clients and other businesses spending less. Other comments related to rising costs and current interest rate levels.
Among different industries in the services sector, retail trade took the top spot for activity with a 54.2 reading, followed by health and community services at 53.0.
The lowest result was accommodation, cafes and restaurants, with 42.9, significantly down since the start of the year.
- NZPA
