Activity in the services sector is showing strong signs of life after a short-sharp blip.
Activity in the services sector has bounced back. Photo: 123rf
BNZ - Business New Zealand's Performance of Services Index rose 5.6 points in May to 58.8, compared with the month before.
A reading over 50 indicates the sector is expanding.
Activity, sales and new orders picked up strongly, while employment dipped a touch.
April's weaker result was affected by the timing of Easter and ANZAC Day and May's result is now back at March levels.
BNZ senior economist Craig Ebert said there were a number of positive comments suggesting further expansion.
"We were relieved to see the PSI return with such a vengeance in May. We'll take a seasonally adjusted result of 58.8 any day of the week," he said.
Today's data, combined with last week's strong manufacturing numbers, points to solid activity in the months ahead.
