15 Aug 2011

Services sector shows slowdown

7:02 pm on 15 August 2011

Activity in the services sector in New Zealand slowed slightly in July.

The BNZ Business New Zealand Performance of Services Index fell 0.2 points to 54.5 points in July compared with June.

A reading above 50 indicates the service sector is generally expanding.

BNZ head of research, Stephen Toplis, says despite the small dip, firms are still in expansion mode and expect to remain that way.

However, he says the big question mark is what impact last week's "ructions" in the financial markets might have had on that confidence and it is a question of wait and see in that regard.