The reading of new orders and business dropped to 53.1, the lowest level since June 2022. Photo:
The rate of expansion in the services sector has slowed as the number of new orders and business drops to its lowest level in almost a year.
The BNZ-Business New Zealand Performance of Services Index (PSI) for March was down 1.4 points from the month prior to 54.4 points.
That was still above the long-term average of 53.6 for the survey, with a reading above 50 indicating expansion.
The reading of new orders and business dropped to 53.1, the lowest level since June 2022, while activity and sales rose to its highest result since November.
BNZ senior economist Craig Ebert said while the rate of new orders seemed positive, at 53, they tend to average 57.5 through their cycle, suggesting caution from consumers.
BusinessNZ chief executive Kirk Hope said that the March result was consistent with activity levels seen in the first three months of the year.
"Although there was a moderate decline in expansion levels during March, the proportion of negative comments jumped from 51.9 percent in February to 58.6 percent in March," he said.
"A cooling economy, effects of price increases and general uncertainty were the main comments that came through."
Across the industry, transport and storage, wholesale and trade saw improvements, but retail trade was below the the 50 breakeven level for the fifth-straight month.