North Island shades South

The South Island's performance in the services sector during April was overshadowed by a stronger North Island result, which reflected expansion in several areas.

The BNZ-Business New Zealand monthly performance of service sector index rates expansion above 50, and contraction below 50.

Nationally, the index rose to 56.1 compared to a year ago, led by the North Island's central and northern regions respectively at 58.4 and 55.4. In the South, Otago Southland and Canterbury-Westland were well down on a year ago, at 50.8 and 49.9.

Nationally, and mirroring the March results, four of the five main sub-indices were in expansion during April: production up to 62.6, new orders/business at 60.7, supplier deliveries up at 53.3, employment, although down, was at 51.3 and stock/inventories fell again, to 47.1Business New Zealand chief executive Phil O'Reilly said the strong April result contributed to the strongest three-month result since the last quarter of 2007. BNZ senior economist Craig Ebert said the service index echoed features of last week's separate manufacturing index, ''rocking along rather well'', with production and new orders leading the way.

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