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The services sector in New Zealand continued to expand in January, and at a sharply higher rate, the latest survey from BusinessNZ revealed on Monday with a Performance of Services Index score of 57.1.

That's up from the upwardly revised 52.1 in December (originally 51.9) and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Individually, supplier deliveries moved into expansion territory, while sales, employment, new orders and stocks all continued to expand at a faster rate.

"For now, January's glowing PSI report fits with the rather upbeat view of the economy expressed by the Reserve Bank last week. In the least, it helps offset a still soft looking PMI. Regardless, the near term outlook heavily depends on how much - and for how long - disruption occurs as a result of local weather conditions and COVID-19," BNZ Senior Economist Doug Steel said.