The Performance in Manufacturing index, out on Friday, showed the region continuing to suffer the highs and lows of activity. But the BNZ-BusinessNZ PSI index showed after the low-rating January reading of 42 points for Otago-Southland, there were some ''robust'' local service sector performances, Mr Scandrett said.
The regional March PSI was well-positioned in expansionary territory at 62.3 points. A reading above 50 indicates expansion.
''We can happily note this is almost the same as our strong February result of 61.9 points.''
In March, Mr Scandrett had received positive survey feedback around the favourable summer weather supporting decorating services work and some, but not all, tourism-based activities.
The level of cruise ship spin-off activity within the Dunedin area had been assessed at the upper end of the anticipated scale.
Feedback from the accommodation sector was that it stretched to higher levels than seen during recent months.
Several of the sub-indices readings were all tracking close to a strong 60-point level, he said. Sales, new orders and deliveries presented buoyant assessments on the strength of the current service sector.
Overall, Otago-Southland led the country in service index activity. Canterbury-Westland was on 58.7 points, northern had 57.2 and central fell back into negative territory on 45.3 points.
The national seasonally-adjusted reading was 55.4 points.
Business NZ chief executive Phil O'Reilly said consecutive and consistent levels of health expansion in the service sector had been few and far between during the past few years. The current result was encouraging.
Like the main result, the proportion of positive comments from respondents was all but identical from last month, he said.
''Weather conditions dominated actual comments made, with many finding the fine weather a boost for activity. However, others providing negative comments have outlined the drought as a constraint on growth.''
BNZ senior economist Craig Ebert said there were question marks about the sustainability of the recent housing market upswing. The recent hot spots were likely to have helped the March PSI to its still-strong reading through real estate, legal and financial services.
