The BNZ-BusinessNZ performance in services index (PSI), released yesterday, shows the region on 45 points, down 1.5 points from May. A total below 50 indicates an industry in contraction and above 50 one in expansion.
Otago-Southland was well below the national index of 54.3 and lagged northern (51.8), central (55.2) and Canterbury-Westland (58.7).
"To add another dollop of disappointment to the mix, this local level falls short of the June PSI survey outcomes in other regions which were all, to varying degrees, in an expansionary band," Mr Scandrett said.
Evaluation of the June sub-indices provided the evidence for the underwhelming performance as sales, employment, new orders and inventory elements had all delivered contraction-based results for the region.
"Respondent comments do provide some positive signals around tourism-generated lifts in winter visitor numbers and alongside those, we see selected related support for positive retail sub-sector movement."
As was often the case in the surveys, the flip-side also revealed a degree of negative comment and in June regional sentiment included references to flat activity across wholesale and construction sectors, he said.
BNZ senior economist Craig Ebert said that while June's national PSI remained frustratingly volatile, its overall level remained clearly encouraging with regard to economic growth.
