15 Mar 2010

Service sector continues slow expansion

1:54 pm on 15 March 2010

The service sector continues to expand, albeit slowly, according to the latest BNZ Business New Zealand Performance of Services Index.

The index for February stood at 53.7, up 0.6 points from January. However, it is 7.4 points higher than a year ago. A score above 50 indicates growth.

New orders and sales activity continues to expand. However, respondents cite cash flow and lack of demand as concerns.

BNZ senior econimist Craig Ebert says although the recovery of the services sector is encouraging, it is still not fast enough to create jobs.