BNZ head of research Stephen Toplis says recent market volatility may have dented activity in the services sector, but still there's enough momentum to drive economic growth.
The BNZ Business New Zealand Performance of Services Index fell 0.2 points, to 54.5 in July compared with June.
A reading above 50 indicates the service sector is expanding.
Mr Toplis says that despite the small dip, firms say activity is still expanding, and they expect it to remain that way.
He says a pick up in new orders encouraging, but it will be next month before it's clear whether recent ructions on global financial markets have affected activity.