Auckland 'slowest growing region in country'

The country's largest region is also its slowest growing one, according to the latest ASB/Main Report quarterly economic scoreboard.

Auckland, which accounts for nearly a third of the New Zealand economy, scores just two stars out of a maximum of five.

The region was weighed down by a peaking housing market, lower tourism and a general profit squeeze for businesses, today's report said.

Despite that, activity as opposed to growth remained high, with Auckland having its lowest unemployment rate in 19 years.

The only region to receive five stars in the June quarter was the West Coast.

It consistently showed growth rates above the national average in a wide range of sectors, including retailing, housing, tourism and construction, but there were signs growth rates were generally decelerating, the report said.

A small recovery was under way in Nelson and Tasman - which scored two and three stars respectively - where the downturn came much earlier than elsewhere.

Both regions now had greater housing activity and higher house prices.

While growth rates remained low in the two regions, experience there suggested a soft landing for other regions in the quarters ahead, the report said.

Regions such as Northland, Gisborne and Marlborough -- all four stars -- were showing signs of good growth but each had at least one major sector running well below national averages.

Canterbury, which accounted for 14 per cent of the national economy, was rated three stars.

Non-residential construction was at a high while residential construction had bounced back from mid-2005 lows but elsewhere there were signs of slowing growth with low retail sales growth and fewer guest nights, the report said.

Wellington (13 per cent of the economy, three stars) appeared to be growing nicely, without being spectacular on any one front. Construction activity was increasing and tourism numbers continued to climb but the one blight was that the region had the highest unemployment rate.

Waikato and Bay of Plenty (9 and 6 per cent of the economy respectively) both also scored three stars.

In Waikato, farm sales were down this year and farm prices were generally flat but local employment growth was the fastest in the country.

In Bay of Plenty, average house prices were up 14 per cent, and job growth up 25 per cent but non-auto retail sales grew only a paltry 3 per cent, and new car registrations were down a whopping 21 per cent. Rotorua tourist numbers were also down.

- NZPA