17 Aug 2015

Falling dollar helps services sector grow

3:19 pm on 17 August 2015

A falling New Zealand dollar is helping the services sector expand.

The BNZ-Business New Zealand Performance of Services Index fell 1.6 points to 56.5 in July, compared to June, with growth easing back in most indicators, including new orders.

Despite that, a reading above 50 still indicates expansion. The chief executive of Business New Zealand, Phil O'Reilly, said new business and orders, along with product development, helped boost activity last month.

He said a lower currency was also helping the sector to expand.

Senior BNZ economist Craig Ebert said although it was a little slower, the index remained at high levels and the services sector was still showing robust growth.

"It is probably above what we'd term 'average' for that series," he added.