Service sector to the fore

Otago-Southland is well ahead of its regional rivals in service sector activity, with indications the summer season will be good for businesses associated with tourism.

The BNZ-BusinessNZ performance in services index, released yesterday, showed Otago on 66 points, ahead of Northern on 56.5, Central on 57.1 and Canterbury-Westland on 58.

The New Zealand total was 58.

A reading above 50 indicates expansion, with the higher the reading, the stronger the expansion.

Otago-Southland Employers' Association chief executive John Scandrett said the strength of the regional reading was centred firmly on the tourism accommodation and recreational activity areas.

''We're seeing robust and consistent supporting comments around an overall lift in visitor numbers and the strength of these opinions bodes well for continuing buoyant tourist-based activity into the Christmas period.''

However, retail and wholesale performance had not, in all cases, kept pace with the tourist sector outcomes and that was somewhat disappointing.

Within the main index sub-indices, the aggregated orders and new business indicator was sitting on a ''most positive'' 70.8-point reading.

Across selected activity areas, some operators were clearly getting a larger slice of business than others, he said.

BNZ senior economist Craig Ebert said services activity remained positive throughout the country.

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