The services sector expanded further in September, with an economist optimistic that the growth will continue into the fourth quarter.
The BNZ-Business New Zealand Performance of Service Index rose 2.9 points to 54.8 in September.
A reading above 50 indicates the sector is expanding.
BNZ economist Doug Steel says the improvement is relatively broad based, with the exception of the retail and accommodation sectors which aren't doing that well.
He says indicators for September and October are starting to accelerate a little.
Mr Steel says income tax cuts introduced on 1 October are likely to lift spending and confidence into the fourth quarter.
He says the result may be even more positive than what it suggests, given the Canterbury earthquake and bad weather in September.