Experts say a significant drop in economic confidence in the Bay of Plenty could be related to a cooling house market, softening of dairy prices and unease in the agricultural sector.
Results from the Westpac-McDermott Miller Regional Economic Confidence survey, released today, showed a net 13 per cent of Bay households expected their region's economy to improve in the next year.
Westpac chief economist Dominick Stephens said 13 per cent was a significant drop from the 37 per cent recorded for the September quarter.
"Confidence in the Bay of Plenty has fallen sharply over the past quarter," Stephens said.
"In part, this is likely to be related to the cooling in the housing market. We have also seen a recent softening in dairy prices, as well as a growing sense of unease over the possible impact of government policy on the agricultural sector."