Otago's service sector has booked a 10th consecutive month of contraction, while nationally the index slipped 2.3 points to remain only just in expansion territory at 50.6 points.
Unlike last week's performance of manufacturing survey, where Otago bucked the national trend and booked a third month of expansion, the service sector remained lacklustre, partly due to Rugby World Cup gains being dampened as visitors head north.
Business New Zealand performance of services index values above 50 reveal expansion, while below 50 are in decline.
Otago Southland Employers Association chief executive John Scandrett said the latest figures showed the region in contraction for 10 consecutive months, with the sub-index of activity and sales "significantly lagging behind".
"While the region's service sector has been well behind those of the rest of the country, there was some light for October's result as overall activity improved from 34.4 in September to the current value of 43.74," Mr Scandrett said in a statement yesterday.
BNZ head of research Stephen Toplis said business confidence was being undermined by a raft of factors, including the confusion created by the European chaos, further postponement to the expected pick-up in construction activity, weak domestic demand in Australia, post-Rugby World Cup hangover, the general election and first signs that commodity prices might fall in a meaningful way.
While Otago Southland gained hugely, from 34.4 points to 43.7, it remained well below expansion territory.
Mr Scandrett said businesses directly involved with the RWC had largely benefited, but the rest had suffered.
"With Christmas approaching, we hope to see some lift in overall service sector activity, but much will depend on boosting new orders and sales to drive overall activity over the months ahead," he said.
