Economic growth eases

Nationwide economic growth eased for the first time since March 2009 during the September quarter, led by a decline in activity in the South Island.

The National Bank's regional trends survey shows economic activity shrank 0.2 per cent in the three months, against 0.2 per cent growth in the previous quarter.

Taranaki posted the largest decline in activity (1 per cent), joined by the heavyweight regional economies of Canterbury, Otago and Wellington, who saw declines of between 0.8 per cent and 0.7 per cent.

The country's smallest regional economies - the West Coast and Gisborne - grew at a faster rate than any other region during the quarter, lifting activity 1.2 per cent and 1 per cent respectively.

A boost in commercial building permits, new car registrations and house sales drove economic activity on the West Coast during the quarter.

An increase in unemployment, a dip in the number of commercial building permits and a lack of house sales affected Taranaki's result.

- NZ HERALD ONLINE