The pace of activity in the services sector fell for the fourth consecutive month because reduction in demand led to a stall in economic activity.
The BNZ-Business New Zealand performance of services index eased more than 2 points to a seasonally-adjusted 50 in August.
A reading at 50 indicates the sector is neither expanding nor contracting.
BNZ senior economist, Craig Ebert, says the index positive and negative components.
"It is still mixed," he says.
"The averaged that we are seeing are starting to give way to more of a flat feel than a growth feel".
Last week, manufacturing activity contracted.
The GDP-weighted composite index, which combines the manufacturing and services surveys, fell two points to 49.6, the lowest level since July last year.
