A measure of activity in the services sector showed further expansion in September, and indicators suggest more growth is on the way.
The latest BNZ Capital - Business NZ performance of service index (PSI), published on Monday, lifted 1.9 points from August to 53.2 points last month.
A PSI reading above 50 indicates the service sector is generally expanding; below 50 that it is declining.
The PSI was below 50 for the 15 months to June, inching above the line in July with a reading of 50.1.
Business NZ chief executive Phil O'Reilly said ongoing momentum in overall activity would most likely continue as positive comments from respondents tended to focus on Christmas approaching, the weather improving and people feeling more confident about spending.
While only two of five diffusion indices that make up the PSI expanded in September, the two that did rise were key indicators.
Activity/sales lifted 7.5 points to 58, the highest result since November 2007, while new orders/business edged up 1 point to 58.6.
Employment slipped back 1.3 points to 48, and had now been contracting for 19 months.
Stocks/inventories was down 1.1 points to 46.9, while deliveries lifted 1.4 points to 49.3, the highest result since March even if still in decline.
In the northern region activity lifted 5.6 points to 55.8, recording its highest result since November 2007. The central region was down 1.2 points to 50.4, Canterbury/Westland region was down 2.4 points to 51.5, and Otago/Southland tumbled 12.4 points to 45.6, similar to levels of June and July.
© 2009 AAP
