The November BNZ-BusinessNZ Performance in Services Index had Otago-Southland on 75 points; a reading above 50 indicates expansion and the higher the number, the greater the expansion.
The next highest region was Canterbury-Westland on 61.8 followed by central on 61.7 and northern on 61.
The seasonally adjusted national reading was 59.8, the highest level since November 2007.
Otago-Southland Employers Association chief executive John Scandrett compiles the regional reading for the national index.
Asked yesterday whether the PSI reading reflected what he was seeing and feeling in the region as he talked to members, he said there was a "genuine sense of optimism'' and he was receiving positive feedback around the region.
The one caveat he put on the results was that they could be from a narrow window of response times but even then, the result reflected the positive way people were looking at things.
Trading generally appeared to be based on the anticipated pre-Christmas seasonal demand and it was interesting to see references to "smart selling'' lifting selected marketing outcomes.
"The one thing that impresses me is people looking at different ways of doing business. Current circumstances are tight but that encourages people to think differently about doing business.''
The activity levels and new business sub-indices in the region were hovering close to the 80-point mark and sector feedback was widely directed towards expansionary trending patterns, Mr Scandrett said.
Tourism sector comments supported high value visitor spending, property service operators were seeing a strong build-up around the Christmas period for property maintenance and construction industry parties were talking positively about wider opportunities connected to "big job'' pricing activity.
"People think of the holiday period with everyone closing up and heading to the beach. But for property services, it is a time for maintenance. When the Christmas period arrives, these people swing into action.
"Running these positive themes together gives us the high reading.''
Mr Scandrett believed the positive feeling and optimism among some in the service sector was spreading to others in the sector.
One of the stand-outs for Dunedin was the housing sector, with increased interest from Aucklanders wanting to come to the city.
Before, people felt it was happening but now they had proof it was taking place.
In Central Otago and Queenstown, economic activity was driven from what was happening in Auckland.
Dunedin had been languishing in the past but there was a lift in people wanting to come to the city.
The month's negative results sat in a narrow band and it appeared they were limited to cultural services and selected wholesale activities, Mr Scandrett said.
BNZ senior economist Craig Ebert said if the Reserve Bank needed any reassurances the economy had a lot going for it, the November PSI had given these in spades.
It roared back to a seven-year high and well ahead of its average since its inception in April 2007 at 53.8.
"If there was a laggard in its componentry, it was inventory. But this simply left its production and new orders leading the charge. With this, we expect the services component of GDP will print well over the second half of 2015.''
There was still much to suggest consumer spending continued to forge strongly northward, he said.
And consistent with everything else when hearing of the booming tourism sector, October's guest nights were up 2.9% on a year ago, sustaining the solid annual growth seen over the last couple of years.
It was no surprise to see occupancy rates continue to push higher to new long-term highs, Mr Ebert said.
