Sun shines first on Gisborne economy

Gisborne led the country for economic activity in the final three months of the year, a survey shows.

Ten out of 14 New Zealand regions recorded a jump in business in the December quarter, with Gisborne enjoying a "stunning" increase of 3.6 per cent, the National Bank's regional trends survey said.

Annually, however, Southland continued to be the fastest-growing economy, at a rate of 8.1 per cent.

Overall, New Zealand economic activity rose 0.5 per cent in the December quarter and 4 per cent year on year.

The South Island had a year-on-year growth figure of 4.8 per cent, and the North recorded 3.8 per cent.

The provinces recorded an annual growth rate of 4.5 per cent, the strongest since 1994, and urban growth rose by 3.6 per cent, a two-year high.

But economic activity was busier in the North Island, rising 0.6 per cent compared with the South Island's 0.2 per cent gain.

After Gisborne, Taranaki recorded the largest rise in economic activity (1.9 per cent), followed by Auckland (1.2 per cent).

Wellington had the largest drop in economic activity (-0.9 per cent), followed by Canterbury (-0.3 per cent). Gisborne topped the table due to a rise in house sales, commercial building consents, and the fastest-growing number of accommodation guest nights.

But on an annual basis, it trailed the pack, along with the Bay of Plenty. The highest rate belonged to dairy-rich Southland.

The most sustained growth rate was recorded by Otago, which had growth for 14 quarters in a row.

During the December quarter, the country faced factors including a 5.2 per cent decline in commodity prices; shaken confidence after the September 11 attacks; a weakened exchange rate and falling retail interest rates.

Consumer confidence was up in most regions, house sales recorded their strongest quarterly rise in more than three years, and private car registrations and retail trade figures grew strongly.

Employment growth was strongest in the Bay of Plenty, and the unemployment rate rose in the North Island but fell in the south.

- NZPA