Through recent months, the announcement of the performance in the services sector index represented a "hard day at the office" for Otago and Southland.
Yesterday was no exception, Otago-Southland Employers Association chief executive John Scandrett said.
The latest BNZ-Business NZ PMI showed Otago-Southland at only 34.4 points, the lowest level of activity since the index began in 2007.
A reading below 50 indicates a sector in decline, and the lower the number, the sharper the decline in activity. A reading above 50 indicates a sector in expansion.
Activity in the other four regions was expansionary, led by Canterbury-Westland on 57.2 points, central on 57 and northern on 55.8.
"It's hard to accept that across the region overall, the Rugby World Cup 2011 activities haven't served to stimulate a more buoyant PSI report than the low 34.4 points delivered in Otago-Southland for September.
"When we look at local manufacturing activities, again recently reported leading the country, and see that connected to those positive outcomes from RWC activities, it is difficult to digest a slow-performing services result," Mr Scandrett said.
A trip to Southland last week left Mr Scandrett with an uneasy feeling about the future. Tourist and hospitality operators were having a dire time in the south.
The two reasons seemed to be the earthquakes in Christchurch and Japan affecting decisions by Asian tourists to travel elsewhere and the falling values of the US dollar and the euro giving Asian tourists the chance to travel to the US and Europe at "reasonable cost".
"We really are two countries here in New Zealand. Otago-Southland has been the bottom end of the country for the services industry for several months. It's not the same in Auckland and Wellington."
Mr Scandrett was told by a senior tourism operator the South Island tourism industry would take two years to recover from the present downturn.
Apart from hospitality and tourism, the services sector also covered services to the construction industry, property and business services, wholesale trade and health and community services.
But the tourism and hospitality industries were suffering the most, he said.
