The New Zealand PSI for April was 56.5, 1.1 points lower than in March. A reading above 50 indicates the service sector is expanding.
The seasonally unadjusted regional readings were: Otago-Southland 52.9; Canterbury-Westland 58.3; central 59.5; northern 55.2.
The service sector makes up two-thirds of the economy.
Otago-Southland Employers Association chief executive John Scandrett told the Otago Daily Times while there had been some slippage in April against the 58.5-point reading for the region in March, 52.9 was still positive and the majority of survey participants had logged expansionary-based comments.
Wholesale and retail operators had tabled mixed April messages on performance outcomes but there were robust activity responses from the tourism, construction and homes and business services sectors.
Within the sub-indices, sales levels and forward orders were comfortably in expansion mode, he said.
BNZ senior economist Craig Ebert said retail spending started the year on the charge but spending growth was likely to slow markedly in the three months ended June.
''Given the 1.1% fall reported in April's electronic card transactions, we'll need to see a big bounce in May's transactions if we're to believe that June quarter retail trade volumes expanded at all.''
