The service sector has continued to expand with improving weather and the upcoming summer holiday season.
file photo Photo: 123rf
The BNZ-Business New Zealand Performance of Services (PSI) Index for October rose 1.5 points from September to 57.4, which was well above the long-term average of 53.6.
A reading above 50.0 indicates the service sector is generally expanding.
BusinessNZ chief executive Kirk Hope said the survey was above the 55-point mark for three consecutive months, with the two key sub-indexes of new activity/sales (61.0) and New Orders/Business (59.9) remaining in a very healthy position.
In addition, employment at 57 points experienced its highest level of activity in 18 months.
The proportion of positive comments for October (55.4 percent) was up on September (47.9 percent).
BNZ Senior Economist Craig Ebert said the latest readings indicate a shift in spending to services and away from durables.
"The leading services industry - by a long chalk now - is cultural, recreational & personal," Ebert said.
"As big as this was back in September, with 80.0, it got more gargantuan in October, with 90.6 (points). The removal of gathering limitations is sure bringing in the crowds."
