Hawke's Bay goes to town with record spending

Spending by Hawke's Bay shoppers in December was up 7.6 per cent on the previous year. Photo / Paul Taylor

Confidence in the local economy is driving spending growth in the region, the Hawke's Bay Chamber of Commerce head believes.

Paymark records show Hawke's Bay shoppers spent $154.2 million across the Paymark network in December - 7.6 per cent more than in December 2014.

Hawke's Bay Chamber of Commerce president Wayne Walford said people had increasingly positive attitudes toward the region.

"People are seeing movement in house prices here and some energy and conversation about people moving down here from Auckland," he said.

"I think there's a greater sense of certainty moving forward."

Hawke's Bay Tourism general manager Annie Dundas said tourism was probably the current "shining star" of the region's economy, contributing $700 million in the past year - $140 million more than in 2014.

"It's been very strong as people have been coming from overseas as well as people moving around New Zealand.

"Tourism is in a big upswing and we're proud to be part of that - we work hard to promote the region.

Mr Walford said tourists were coming to the region all the time for a range of things.

"I think there is general growth there. People from all over the country are coming to get married here."

He believed people had become more discerning about when they shopped, with some preferring to wait until the Boxing Day sales.

"I imagine January will be busy as well, as people are around doing all sorts of things and taking advantage of the sales and opportunities that are there."

Nationwide, Kiwis spent an extra $397 million during December compared with the previous year.

The growth for the entire country was up almost 8 per cent to $5.493 billion.

Paymark suggested several factors were behind the overall increase in spending, including the Reserve Bank cutting the OCR to 2.5 per cent per annum in early December. This flowed on to lower mortgage rates as well as continued GDP growth.

Lower petrol prices were offset by strong accommodation figures as New Zealand experienced record tourist numbers.