The BNZ-BusinessNZ index showed Otago-Southland with 60.9 points at the end of February. The New Zealand seasonally adjusted index was 55.6, northern was 55.4, central was 59, and Canterbury-Westland was 59.1.
Otago-Southland's February 2015 reading of 60.9 was well ahead of the 2014 reading of 54 but in line with the 61.9 reported in February 2013.
Otago-Southland Employers Association chief executive John Scandrett said feedback from the retail and home decorating trades, and also the tourist and accommodation industries, were strongly expansionary in nature.
But there were property services sector comments that drew attention to a sluggish start to new year activities.
Wholesale trade operators reported a mixed performance - citing positive back-to-school influences and selected negative outcomes where product pricing competition has created pressure points.
Sub-indices readings were all, at varying levels, ranging on the expansionary side of the ledger, he said.
BusinessNZ chief executive Phil O'Reilly said the positive economic climate at present had assisted many businesses in ensuring steady income flows, as well as new opportunities for expansion.
''Comments from respondents point to customers and clients remaining confident as they continue to have money in their pockets to spend. In addition, a number of service sector businesses continue to adapt by way of new products and opportunities to expand their sales base, including offshore,'' he said.
BNZ economist Doug Steel said the service sector remained fit and healthy.
The service sector reading of 55.6 was well above the 50 mark delineating expansion and contraction.
The slowdown from January was well within the bounds of monthly noise.
''The trends indicate the strong pace of service sector growth in 2014 has continued into 2015.''
Combining the robust PSI reading with the 55.9 recorded in the Performance in Manufacturing Index on Friday showed above average results, he said.
All components from sales to new orders and employment from the combined surveys were above their respective averages.
''It bodes well for economic growth.''
