After three consecutive months of growth and expansion, activity slowed down in the service sector for the month of October, as has been confirmed by official figures shared by the BNZ Capital-Business New Zealand Performance of Services Index. The index recorded a fall of 3 points in October, to 49.9, as compared to the previous month. A figure of above 50 indicates a growth, while anywhere below it is slow or nil growth.

Although employment hiked a little for the first time in over 18 months, new orders and sales contracted inched at a much slower pace. Experts are of the view that the trend of sudden growth and then slow progress is indicative of the fact that while improvement is definitely happening, it is not very strong.

The coming Christmas month might just nudge the growth and December might see rising index points. Business NZ chief executive Phil O'Reilly said that while the overall market was currently flat, next month might be different. "No doubt for many, the approaching Christmas period may provide some relief, while the recently announced revised dairy payout may also provide an end of year boost for those sectors providing services in particular to rural communities," Mr. O'Reilly added.

Last week, a similar survey confirmed that even in the manufacturing sector, October's growth was very slow.