An economist says strong activity in the construction and dairy sectors services could push the economy to grow by 5% in the coming year.
The BNZ-Business New Zealand Performance of Service Index rose to 58.1 in July, up 3 points from the previous month, its best July month result since the survey began in 2007.
It follows buoyant manufacturing activity last week.
The BNZ is picking growth of about 3%, but its senior economist, Craig Ebert says the chances of the economy expanding by 5% over the coming year can't be dismissed.
Mr Ebert warns that would force the Reserve Bank to act aggressively to keep prices in check.