28 Jan 2013

Pace of activity in services sector eases

7:02 pm on 28 January 2013

Activity in the services sector dropped off last month due to a slow down in new activity and sales, but the sector is still in expansion.

The BNZ-Business New Zealand Performances of Services Index fell 2.7 points to 51.5 in December.

A reading above 50 indicates the sector is expanding.

The pace of activity slowed for new orders and business and sales.

Stocks and inventories and supplier deliveries were in contraction for the month.

Business New Zealand chief executive Phil O'Reilly says while the December result was weak but the sector still looks positive.

"The staffing index - in other words the propensity to hire - was well and truly into growth territory. New orders and businesses was once again pretty strong."

Mr O'Reilly said that indicates a little more confidence in the services sector in the New Year.