New Zealand service sector activity expanded at a slightly quicker pace in September than a month earlier, and alongside its sister manufacturing survey continues to point to above-average economic growth.
The BNZ-BusinessNZ performance of services index rose 0.3 of a point to 58 in September from August, and was up from 56.5 in the same month a year earlier. The service sector, which accounts for about two-thirds of the economy, has been in expansion since July 2010, where a reading above 50 indicates increased activity.
Bank of New Zealand economist Craig Ebert said today's report affirms upbeat expectations from the service sector in the New Zealand Institute of Economic Research's quarterly survey of business opinion, with positive employment and investment intentions.
The PSI follows its sister survey, the performance of manufacturing index, released last week, which showed industrial production stepped up in September with a pick-up in agriculture fuelling food and beverage activity, and BNZ's Ebert said the two services were "consistent with above-trend economic (GDP) growth."
