New Zealand services sector activity, which accounts for about two thirds of the economy, has expanded for a ninth consecutive month.
Underpinned by a six-and-a-half-year high in new orders, the BNZ-BusinessNZ performance of services index increased 0.5 points to 58.1 in January.
It is the highest level since November 2007, and up from 53.3 a year earlier.
A reading of 50 or higher indicates the sector is in expansion, while a reading below 50 indicates a contraction.
The PSI was led by new orders/business with a reading of 66.1, its highest level since June 2007, followed by activity/sales with a reading of 63.2.
Employment rose 2.6 points to 55.2.
Supplier deliveries fell into contraction with a reading of 47.7, from 52.9 in December, as did stocks/inventories with 45.6, down from 54.2.
"The surge in new orders fits with the other story of the latest PSI, that of inventory slimming at a rate of knots," BNZ economist Craig Ebert said.
The seasonally-adjusted BNZ-BusinessNZ performance of composite index, which combines the PSI with the performance of manufacturing index, increased 0.2 points to 57.9 on a gross domestic product- (GDP) weighted basis, and was up 0.4 points to 57.4 on a free-weighted basis.
Retail trade remained the most positive sub-sector at 66.3, followed by wholesale trade at 62.1 and accommodation, cafes and restaurants at 61.4.
Property and business services reported a 52.2 reading and transport and storage 50.1. Health and community services activity showed a contraction at 44.7, due to the summer holiday break.
