Growth slows in New Zealand services sector

Growth in New Zealand's services sector slowed last month to its lowest level in more than a year, according to the latest performance of services index (PSI) released on Tuesday.

The BNZ-Business New Zealand PSI for March was 54.8 on a scale where above 50 indicates expansion and below 50 contraction.

The level was down 1.9 points from February and was the lowest level of expansion since November 2014.

Business New Zealand chief executive Kirk Hope said that easing expansion levels should not undermine the fact that the sector was still in positive and solid territory.

"While overall activity was not as high compared with recent months that came close to the 60-point mark, the sub-indices that underpin the main result are all still positive, along with expansion across the country," Hope said.

BNZ senior economist Craig Ebert said in a statement that it was clear over recent months that the momentum of growth has slowed since a high point late last year, but "March is still running above the historical average of 53.9."

The GDP-weighted performance of composite index, which combines the PSI and the performance of manufacturing index, was down 1.7 points to 54.8 in March.