New data shows the service sector has now dipped in activity for six months in a row.
The most recent PSI recorded performance at its lowest since May, at 46.9.
For growth, it needs to sit at 50 or above.
ABC Business Sales CEO Chris Small told Heather du Plessis-Allan the results were a surprise.
He says the data had suggested the low point would be during Winter.
The sector is blaming the weak economic environment for the downturn, Small saying that in comparison, the retail sector saw a boost around Black Friday.
He says this shows things are turning around and services are just the lagging factor.
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