New Zealand’s service sector expanded at a slower pace in December, data from a survey by businessNZ showed Monday.
The seasonally adjusted performance of services index dropped to 51.5 in December from 54.2 in November and 57.8 in October, indicating slowdown in activity growth. An index reading above 50 signals expansion in the sector, while one below suggests decline.
New orders received by service sector firms increased at a slower rate in December, and was well below the significantly faster growth seen in October. Reflecting the weaker order growth, service sector output increased at a notably slower pace during the month.
In contrast, the December survey saw an acceleration in employment growth in the service sector, following a slowdown in the previous month.
“When comparing the PSI with its sister survey the PMI, the service sector has held up despite another difficult trading year,” BusinessNZ chief executive Phil O’Reilly said. “However, 2012 has ended with more of a whimper than a bang as new activity/sales slowed and employment remained lackluster.”
by RTT Staff Writer
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