16 Jul 2012

Services sector still in expansion mode

12:25 pm on 16 July 2012

The services sector remains in expansion, despite falling from May.

The BNZ - Business New Zealand Performance of Services Index for June fell 2.3 points to 54.3. A reading above 50 shows the sector is expanding.

All of the five categories measured stayed above 50, led by new orders and business at almost 58.7 and activity and sales at about 54.7.

BNZ senior economist Craig Ebert says the landscape remains volatile. Progress in the services sector will be similar to the recovery in the economy - slow and difficult.

However, feedback from the construction and building sector shows a bit more optimism. Mr Ebert says the Canterbury rebuild will be the kicker for the construction industry.