19 Oct 2015

Service sector at near eight-year high

5:16 pm on 19 October 2015

Activity in New Zealand's service sector is at its highest level in nearly eight years.

The BNZ-Business New Zealand Performance of Services Index rose 0.8 points to 59.3 in September. A reading above 50 indicates expansion.

BNZ senior economist Doug Steel said the strength of the service sector was helping to offset weakness in the agriculture sector.

"The domestic economy is going quite well. The spending indicators are very firm. Tourism is a standout still, very strong numbers coming from overseas, so that bodes well for the service sector, which is often about bums on seats, and indeed there is strong growth being picked up in this survey."

He said the survey, when added to a similar one for manufacturing last week, points to a pick up in economic growth in the second-half of the year.