New Zealand services sector growth has slowed significantly

The services sector's growth has slowed, with the BNZ-Business New Zealand Performance of Services Index dropping to 49.1 in February, down 1.3 points from January. This indicates a contraction after a brief period of growth. All five indicators of the index showed contraction, particularly in sales and new orders. Employment and deliveries also saw declines, though negative comments from the survey eased slightly. Despite the downturn, some analysts suggest that combining services and manufacturing data points to potential growth this year, which may influence future interest rate decisions by the Reserve Bank of New Zealand.