Although there is a fall in expansion of the New Zealand's services sector, they have recorded the highest result in last three years. It was reported by the services index of BNZ-Business NZ performance. Service sector activity has survived despite the fall in expansion. Mr. Toplis who is the head of the BNZ research said the slow but continuous growth of the economy is shown by the latest PSI.

He further said that despite the havoc created by the Southland storms, the Canterbury earthquake, the malaise created due GST sales and the fall in housing market, the confidence of the people is still very high.

Mr. Phil O' Reilly who is the chief executive of Business NZ said that he was disappointed about the October result but the growth of the service sector is steady.

He further said that since one year, the service sector's growth has expanded and with the coming of Christmas, the service sector will get an additional impetus for growth. Since the early part of this year, the service sector in the Southern Island is declining and increasing in Northern Island.