Service sector little changed in August

The services sector was little changed in August from July but remained in expansion mode, according to an index which measures the sector's performance.

The performance of service index for August was 51.4, up a point from July.

A reading above 50 indicates expansion.

BusinessNZ chief executive Phil O'Reilly said the survey was carried out before the earthquake in Canterbury on September 4.

While comments from manufacturers in that region indicate many have been relatively unscathed by events, many in the service sector may not be as fortunate, he said.

Three of the five sub-indices were still in expansion mode in August.

Employment nudged up slightly after a drop in July, while supplier deliveries saw a slight dip compared with the previous month.

Inventories fell back to a level almost identical with August.

- NZPA