Otago Southland has made strong gains in February in selected retail, accommodation and construction to head up the country's monthly performance of services index.
Nationally the index for February was 56.9 points, with Otago-Southland leaping from 51.8 points in January to 69.4 for February.
Northern North Island had 58.2 points, central North Island was 59.7 points, while Canterbury Westland came in at 54.1 points.
Points above 50 represent expansion, and below, contraction, in the monthly BNZ-BusinessNZ performance of services index.
Otago Southland Employers' Association chief executive John Scandrett said the regional index had ‘‘jumped forward markedly'' from the mixed mid-range, post-Christmas results Otago-Southland experienced.
‘‘Selected retail, accommodation and, particularly construction, sector sentiment have all advanced strongly on the January survey returns. [However] within the retail arena there is a reference to higher level of competitive activities denting expectations,'' he said.
The February activity levels and new orders sub-indices were tracking ‘‘very much at the high-end'' of expansionary readings, and these were likely to drive flow-over positive outcomes for March, Mr Scandrett said.
BusinessNZ chief executive Kirk Hope said the overall national figures for February were boosted by a strong showing in sales, at 60 points, and new orders/business at 61.4 points.
The February index was up 1.5 points from January to 56.9, and continued the trend of the sector recording more than 55 point values since December 2014, he said.
‘‘While some comments revolved around seasonal factors, a number noted increased tourist numbers, as well as proactive steps to increase market share,'' Mr Kirk said in a statement yesterday.
An overall increase in expansion also saw a lift in the proportion of positive comments from respondents, rising from 59.7% in January to 67.6% in February, he said.
For BNZ senior economist Craig Ebert, the most reassuring aspect of the February index was a bounce-back in its employment index, as that offset the softness in February's performance of manufacturing index on staffing, which had moved into contraction.
