Growth in the services sector is nearing pre-recessionary levels, according to the latest BNZ-Business New Zealand Performance of Services Index.
The index for March stood at 57.3, an increase of 3.6 points on February and the highest result since November 2007.
A reading above 50 indicates growth. All five key indicators were expanding with activities and sales hitting 62.9, breaking through the 60 point mark for the first time in more than two and a half years.
Bank of New Zealand senior economist Craig Ebert says the overall index is akin to levels before the recession took hold.
Mr Ebert says increased service sector activity bolsters stronger economic growth and predicts the economy will grow 1% in the three months to June, compared to an estimated 0.4% in the March quarter.
