The seasonally adjusted BNZ-BusinessNZ performance of service index for February was 55.5 - up 1.7 points from January and 4.4 points from December - the highest recorded February result since the survey began in 2007.
The result provided "fuel to the fire" of last week's performance in the manufacturing index. Combined, the two indexes pointed to more than just ongoing economic recovery but, in all probability, a quickening pace of it, BNZ economists said.
Given the continuing general economic unease across the region, the PSI review delivered what Otago-Southland Employers Association chief executive John Scandrett considered a "relatively buoyant overall result".
"Certainly, the February 57.7 point outcome for Otago-Southland has presented a dip against the 63.2 January result but we're still ahead of the 50-point break-even expansion versus contraction threshold and, perhaps more importantly, we can point to the fact that the forward new orders sub-index provides an indication of a forward PSI lift in the approaching weeks," Mr Scandrett said.
The February survey carried references to soft and patchy economic activity when general tourism and construction operations were assessed but, on the flip side, property and business services activities and selected wholesale levels were showing gains.
It was "a good deal more comfortable" looking at those results compared with a significant part of last year when the regional services sector was under considerable pressure.
"Having to then recognise and report PSIs at 34.4 value points (September) and 36.9 points (August) was not a pleasant task and the stark reality of a significant economic downturn locally was something that was, at the time, before all of us," he said.
