19 Nov 2012

Service sector rebounds

9:01 pm on 19 November 2012

Activity in the services sector has rebounded strongly, boosted by an increase in sales and new orders.

The BNZ-Business New Zealand Performances of Services Index jumped 7-and-a-half points to 57 point 4 in October, after contracting slightly in the previous month.

A reading above 50 indicates the sector is expanding.

Services account for about two-thirds of the economy, and the senior economist at BNZ, Craig Ebert, says after weak retail spending and rising unemployment figures, the higher level indicates the recovery remains intact.