Business

Services sector employment strong

09:26 am on 18 February 2014

The services sector continues to show strong growth, despite some surprises across the regions in the latest measure.

The Bank of New Zealand-Business New Zealand Performance of Services Index rose half a point to 58.1, the highest level of activity since November 2007.

A reading about 50 indicates expansion.

The key sub-indices of new orders and business, and activity and sales, were also the highest since 2007, while employment had its strongest showing in nearly two years at 55.2.

Activity was positive across most of the country but activity in the Canterbury/Westland region was just positive, at 50.1.

BNZ senior economist Craig Ebert said strong growth looked set to continue for at least a few months.

Businesses were telling them things were "motoring along quite well" and, with sizeable new orders, there was a strong suggestion growth would continue for at least a few months.

"It's consistent with ongoing jobs growth and, probably, on balance enough to reduce the unemployment rate a little bit further," he said.