Otago and Southland's services sector activity edged up slightly last month, providing the best national July result in the six years the BNZ Business New Zealand survey has been undertaken.
Nationally, the services index was up 3 points to 58.1. Otago-Southland gained 4 to hit 52.3 and the North Island's northern region led the gains, up 11.9 points to 62.9.
Index readings above 50 reflect expansion and below, contraction. The North Island's central region and Canterbury Westland both fell, to 50.5 and 48.8 respectively.
Otago Southland Employers' Association chief executive John Scandrett said the positives of a tourism surge and school holidays boost were tempered with some sectors in contraction.
''The July services index in Otago-Southland has delivered a marginally expansionary outcome that brings forward positive signals on retail-based and selected tourism industry activities,'' he said.
Although the southern sub-indices of activity-sales levels and the employment indicators remained buoyant, Mr Scandrett said the orders-new business sector was ''just in contraction mode'' and could slow down.
Business New Zealand chief executive Phil O'Reilly said that after five months of consistent and healthy growth in activity, the July result provided additional evidence that 2013 was continually shaping up as a positive one for the New Zealand economy.
BNZ senior economist Craig Ebert said the latest index added to numerous other signs that the economic expansion was now accelerating.
''Indeed, the chances of getting 5% GDP growth over the coming 12 months cannot be taken lightly,'' he said in a statement.
