The BNZ-BusinessNZ Performance in Services Index (PSI), released yesterday, had Otago-Southland on top with 69.2 points, 10 points ahead of nearest rival Canterbury-Westland on 59.2.
Last week, Otago-Southland led the September Performance in Manufacturing Index on 60.4 points, nearly five points of its nearest rival, Central.
A reading above 50 indicates expansion, with the larger the number the greater the expansion.
Otago-Southland Employers Association chief executive John Scandrett said the regional services sector had presented some recent roller-coaster outcomes, the September result a high point of the ride.
The September result was a jump on the July and August surveys in which the sector was seen to be sitting on the break-even fence.
''The most recent survey sentiment is strong and broadly spread with the tourism, construction and property services sectors recording positive performance activity.''
The winter season did not necessarily mean benefits for all service operators and across retail, and some wholesale activities, results fell short of desired levels, he said.
Within the sub-indices, general activity and new business feedback elements were ''exceptionally robust''.
''It is quite some time since we have seen these move above the 70-point range as they did in the September survey,'' Mr Scandrett said.
Nationally, the PSI for September was 59.3, 0.8 points higher than August and the highest result since November 2007.
BusinessNZ chief executive Phil O'Reilly said any time that activity was at its highest level for nearly eight years represented a favourable period of growth for the sector.
With activity/sales close to record levels and new orders/business also remaining well above the 60-point mark, the sector was in good health with little sign of any slowdown.
The proportion of positive comments in September of 65.8% was well up from August's 59.2%.
Those who stipulated positive influences cited a variety of factors, including new products and markets, increased demand and seasonal factors, he said.
BNZ senior economist Doug Steel said the positiveness in the PSI added to what was seen in the PMI last week.
Together, those surveys added support to the view of economic growth being stronger in the second half of the year than it was over the first half.
The strength of the services industry strength was proving to be broad-based across the standard component series, industries and the various regions.
There was a notable lift in inventory in September but it was difficult to see that as a negative factor given sales were running hot while new orders were keeping just as fast a pace.
The employment index of the September PSI remained where it had been since the latter stages of last year, he said.
''After something of a pause for breath over the June quarter, consumer spending looks to have re-accelerated over the course of the September quarter.''
The value of electronic transactions increased 0.7% in September.
Its annual growth lifted to 6.4% from an average of 5.9% in the previous three months and from a 4.3% average in the first half of the year.
The results reinforced thoughts real retail sales would post a minimum 1.5% expansion for the third quarter, Mr Steel said.
The resurgence in New Zealand's tourism industry should by now be well known.
Mr Steel expected September's foreign visitor arrivals numbers, due for publication tomorrow, to register 10% annual growth.
It was also important to acknowledge the upswing in holiday-making locals, reflected in August's accommodation survey which showed 5% annual growth in guest nights of ''domestics'' while for internationals it was 2.6%.
A weakening New Zealand dollar would tend to encourage both of those markets, he said.
Performance in services index
REGIONAL
Otago-Southland: 69.2
Canterbury-Westland: 59.2
Central: 58
Northern: 59
INTERNATIONAL
United States: 55.6
Euro zone: 54
United Kingdom: 55.6
China: 51.5
Australia: 52.3
Japan: 53.7
New Zealand: 50.3
