Continued tough news for our economy -- with the service sector still not back in recovery mode

New BNZ BusinessNZ data shows the sector contracted in June, for the fifth consecutive month.

It makes up two thirds of our economy and despite signs of a turnaround, the sector's still continuing to shrink.

It's only had one month of minimal expansion in the past 16 months.

BNZ now expects to see a 0.2 percent fall in GDP in the June quarter.