Northland leads field in economic activity

Twelve regions recorded an increase in economic activity in the June quarter.

The National Bank's regional survey, published yesterday, showed Northland led the field, gaining 2.5 per cent in the quarter.

Two regions posted a drop in economic activity. Southland recorded the largest decline - slipping 0.4 per cent in June after a strong rise in March. Taranaki slipped marginally backwards.

Auckland, Wellington and Canterbury straddled the nationwide increase of 1.3 per cent.

The North Island, at 1.3 per cent, grew marginally faster than the South Island (1.2 per cent).

Canterbury and Otago were the only South Island regions to surpass the national increase in economic activity.

Twelve regions recorded back-to-back increases in economic activity over the first half of the year. Bay of Plenty had the strongest rise, up 4.3 per cent. The next fastest were in Canterbury and Northland, with rises of 4.1 and 3.9 per cent respectively.

At the other extreme, Wellington's economy grew just 1.6 per cent. In comparison, nationwide economic growth was 2.7 per cent.

Business confidence fell in every region except Wellington.

Southland still topped the year-on-year growth rate. Year-on-year growth accelerated in only five regions. The greatest was in Gisborne. The West Coast had the biggest slowdown.

Northland's growth was powered by the largest rise in employment across the regions and strong building activity.

Four consecutive quarters of growth in Gisborne propelled year-on-year growth to a seven-year high. Auckland had its eighth consecutive quarter of solid growth.

- NZPA