New Zealand's service sector continued strong signs of expansion last month, buoyed by strong growth in new business, according to the latest performance of services index (PSI) out Monday.
The BNZ-Business New Zealand PSI for May was 56.8, the highest monthly rating since November last year, said a statement from Business New Zealand.
It was almost identical to the April result of 56.7, on a scale where above 50 indicates expansion and below 50 contraction.
Business New Zealand chief executive Phil O'Reilly said the solid and consistent May result was built on key elements of the index remaining strong, particularly the new orders-business sub- index of 63.1.
"Like last month, the key indices of new business-orders and activity-sales experienced a swing upwards, with the former at its highest point since November 2011. It is also the first time since 2007 that new orders-business have posted consecutive post-60 values," said O'Reilly in the statement.
"If we also take into account the improved manufacturing result via the PMI (performance of manufacturing index), combined, the sectors display a level of activity that is certainly encouraging heading towards the middle of the year."
BNZ senior economist Craig Ebert said the New Zealand PSI was a "leading light on the global stage," compared to those of the United States, Europe, Australia and China.
"It has overtaken America's PSI, and unsurprisingly it's far stronger than the Euro-zone's, but who would have thought it would be far stronger than Australia's? It is also fast catching up with the always sturdy, but recently slowed, Chinese PSI," Ebert said in the statement.
With last month's PMI of 55.7, up 7.5 points from April, New Zealand's economic growth in the second quarter "could be a corker, " said Ebert./.