With its employment levels reaching their peak in three years, New Zealand's service sector persists to inflate for the sixth consecutive month.

The BNZ-Business NZ recital of services index (PSI) stood at 54.1 points in April, down 2.6 down from March, but 7.2 higher when compared to April 2009. A reading above 50 indicates the services sector is generally escalating. So far this year the average score is 54.8 as the average PSI value for 2008 was 49.1, while for 2009 it was 48.8.

Laying emphasis on employment Business NZ Chief Executive, Phil O'Reilly said that though there had been a dip in extension, the fact the sector has been expanding for six consecutive months provides a steady platform for sustained gains in activity.

The employment score is 54.3 points, reaching levels not seen since mid-2007.

"With its sister survey the Performance of Manufacturing Index also showing a pickup in employment, along with Statistics New Zealand's official unemployment rate dropping for the March quarter, there is a clear indication that many businesses are now in a position to again look at hiring additional staff as orders and activity pick up," Mr. O'Reilly said.

Even though the country's economy was 15 months into recovery mode, there were still differences between sector and businesses. Wholesale trade and export activity, particularly dairy, logging and tourism, are contributing to economic growth, while retail remains subdued and households remain conformist.

The Central region's service sector has again led the way, though lower than March results, with 56.4 points in April. The Northern region has displayed a slight expansion standing at 50.8 points, though has fell 6.9 points from previous month.