Strong growth at year's end

The economy posted a solid gain in the final three months of 2004, a National Bank survey shows.

The regional economies survey found that of the 14 regions, Northland was the only one to contract in the December quarter. Gisborne led the increases, with a 3.1 per cent rise from the September quarter.

The three Ws followed: Wellington (up 2 per cent), Waikato (1.6 per cent) and West Coast (1.6 per cent).

Northland posted a 0.2 per cent drop thanks to a fall in commercial building, employment and tourism.

Overall, the urban regions (Auckland, Wellington and Canterbury) rose 1.2 per cent in the quarter against rural New Zealand's 0.9 per cent growth and the North Island slightly bettered the South.

The nationwide measure of economic activity lifted 1.1 per cent.

On a calendar year basis, Taranaki posted the strongest rate of economic growth with a rise of 6.2 per cent. Next fastest were the West Coast (5.3 per cent) and Northland (4.7 per cent).

Nationwide, the gain was 3.9 per cent with rural New Zealand up 4.3 per cent against the 3.6 per cent rise in urban areas.

During the December quarter, commodity prices hit record highs, business confidence grew, retail sales rose sharply and housing and construction activity was strong.

Auckland had the highest consumer confidence and registered a 0.9 per cent gain. Construction drove Auckland where farm sales, job ads, house sales, tourism and retail sales all weakened.

Waikato was driven by increases in building consents, car and retail sales. Wellington had strong gains in employment and house and retail sales.

Gisborne rebounded from a 0.3 per cent fall in September with building consents up sharply. Employment was up, as were car sales.

- NZPA