26 Jan 2015

Service sector 'perks back up'

12:59 pm on 26 January 2015

Activity in the services sector has risen.

The BNZ-Business New Zealand's Performance of Services Index (PSI) rose 1.8 points to 56.5 in December, the average level for 2014.

That compares with the 55.8 point average for the previous year.

A reading above 50 points indicates expansion.

BNZ economist Craig Ebert said the reading for the services sector and an equally robust expansion in manufacturing showed the continuing strength in the economy.

"In essence it's still expanding relatively well. I guess the issue with the latest PSI, as it was for the PMI [Performance of Manufacturing Index], going back to the November indices, they were both a little slower and we just wondered if the economy was losing a bit of steam.

"But these indices for December have perked back up, and they're telling us that growth is at least going at an average rate. So it's all relatively good news."

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