The Performance of Service Index reading was 53.2 points. A reading above 50 indicated services were generally expanding and below 50, that it was declining. The November reading was 38.2.
In the regional breakdown in categories, stocks/inventories, supplier deliveries, activities and sales levels and employment levels were above 50 while orders/new business were below 50, which was concerning, Mrs Nicholls said.
The wholesale trade experienced positive December sales but some reported a slower start to January. Events had a significant impact on the service industry so there was disappointment when University of Otago and Otago Polytechnic graduations were cancelled due to a security threat.
Large events such as the Rhythm and Alps festival at Cardrona and the Kepler Challenge at Te Anau were welcomed by service providers, including the accommodation and hospitality sectors.
Tourism operators were generally busy with domestic visitors, she said.
Those servicing the construction sector were busy while there were delays with some imported products due to supply chain issues.
Tertiary providers were welcoming 1000 returning international students to New Zealand.
There were concerns with the minimum wage increase to $20 an hour from April 1. It was the wrong time to increase costs for many, particularly tourism and accommodation providers, she said.
