14 Sep 2015

Service sector activity reaches highest level in a year.

1:06 pm on 14 September 2015

Activity in New Zealand's service sector is at its highest level in over a year.

The BNZ-Business New Zealand's Performance of Services Index increased 1.6 points in August, to 58.2.

A reading above 50 indicates expansion.

BNZ senior economist Craig Ebert said it was the strongest result since July 2014 - and indicated the economy was growing at a much faster rate than it normally would.

"The level it has got to is amongst the strongest we have seen post-Global Financial Crisis. In fact, it's almost as high as it tends to get. It's consistent with growth running above normal rates.

"What's leading the charge are new orders, and activity itself is expanding at a fairly rapid rate. So all in all, a fairly good result."

Mr Ebert said the category of rapid growth officially kicked in at about 60 points - but said it would be pushing it for the index to get that high.