The Bank of New Zealand-Business NZ's seasonally adjusted performance of services index (PSI) rose to 58.2 from an downwardly revised 56.4 in September.
It was the index's highest level since November 2007.
A reading above 50 indicates expansion in activity.
Four of the PSI's five sub-indices rose, while deliveries dipped but remained in expansion.
Last week, a companion manufacturing survey showed activity more strongly in expansion territory.