20 Jul 2015

Services sector continues to expand in June

2:09 pm on 20 July 2015

Activity in the services sector has remained robust.

The BNZ-Business New Zealand Performance of Services Index edged up to 58.2 points in June - its highest level in a year.

A reading above 50 points indicates expansion.

Key indicators - sales and new orders - expanded strongly, remaining above 60.

BNZ senior economist Craig Ebert said the latest survey painted a picture of robust economic expansion, particularly when combined with last month's improved Performance of Manufacturing Index at 55.3.

"If you look at the components, such as production, new orders, even the employment index, they are all expanding.

"If we delve into the regional stories, they are all expanding," he said.

Despite tough times for the dairy sector and slowing construction sector indicators, the services sector has maintained solid momentum, consistent with expectations for economic growth - among the strongest seen since the global financial crisis.

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