Photo: 123RF The BNZ-Business NZ Performance of Services Index (PSI) fell by 1.2 points in January to 47.9, which indicates the sector is contracting for the third consecutive month. A reading above 50 in the PSI suggests expansion, while anything below signals contraction. The long run historical average of the PSI is 54. The employment sub-index fell sharply over the past month, down by about 6 points to 46.9, which points to jobs being shed from the sector. BNZ senior economist Doug Steel said firms were struggling with ongoing issues related to falling inventories and difficulties getting supplies. "If we look at the component of the PSI, the supplier deliveries, that index is down at 41.6....[which] is quite a dreadful reading and suggests there are multitude of issues out there."