There was a clear North-South divide in the BNZ-BusinessNZ performance in services index for August as Otago-Southland and Canterbury-Westland remained below the significant 50-point mark.
The New Zealand PMI remained above 50 points - which indicates expansion rather than contraction - for the the 37th consecutive month.
The northern region on 55.5 led the way, despite falling 7.1 points from July. The central region (53.5) improved two points, to its highest value since April this year.
In the South Island, Canterbury-Westland fell back further from July to 42.1 and the Otago-Southland region experienced a significant drop for August, down to 36.5 due to low activity and new business.
Otago-Southland Employers Association chief executive John Scandrett said the July PMI drew attention to a negative reshaping of regional orders and new business.
''The August survey has unfortunately provided confirmation of a local sector slow-down. Both sales and forward order sub-indices slipped in August to a contraction-based 33.3 points.
''It appears one man's gain is another's loss, since the recent warm weather patterns have provided opportunities for construction services and decorating operators.
"At the same time, winter tourism operators have not seen ideal conditions that drive and influence anticipated visitor levels,'' he said.
BusinessNZ chief executive Phil O'Reilly said the New Zealand 2013 August PMI reading was up on 2012 but down on 2011.
The lower level of expansion during August meant the proportion of positive comments dropped from 62% to 54%.
Of those who provided positive comments, many outlined the general positive business environment, along with a more buoyant attitude. Many of those who provided negative comments cited competitive pressures.
BNZ economist Doug steel said overall positive trends in the service sector imitated those in manufacturing, building and agriculture.
''It all bodes well for stronger economic growth ahead, after what appears to have been a soft second quarter. The positive overall economic picture makes it difficult to get too downbeat on some of the softer details in August's PSI. Still, they are worth monitoring.''
