14 Dec 2015

Service sector activity at eight-year high

8:40 pm on 14 December 2015

Activity in the services sector is at its strongest level in eight years.

The BNZ-Business New Zealand Performance of Services Index rose 3.3 points to 59.8 last month - the highest since November 2007. A reading over 50 indicates expansion.

All the PSI components increased, with particular strength for sales and new orders.

BNZ senior economist Craig Ebert said the index showed the economy had broad-based strength.

"If the RBNZ needed any reassurance that the economy has a great lot going for it, then November's Performance of Services Index has given it in spades," he said.

Business New Zealand's chief executive Phil O'Reilly said it adds to what has been a very healthy level of expansion in the sector over the last six months.

"The proportion of positive comments in November experienced a sizeable lift from both October and September."

"For those who stipulated positive influences, some seasonal patterns were obviously at play, but general comments centred on a steady stream of activity and opportunities for growth," he said.