19 Jun 2017

Services sector makes comeback

12:55 pm on 19 June 2017

Activity in the services sector is showing strong signs of life after a short-sharp blip.

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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.