North's growth outstrips rest of NZ

Multiple factors have contributed to Northland's strong economy

Economic growth has accelerated faster in Northland than in any other region in the country, says the ANZ.

Its Regional Trends Report, released last week, shows Northland had a 6.3 per cent increase in economic activity in the year to September. The closest rival, Canterbury, had a 4.7 per cent activity increase. The year-on-year increase came from nine months with Northland having the highest regional economic growth. Canterbury had previously spent two years on top.

ANZ economist Steve Edwards said multiple factors had contributed to Northland's strong economy. "The number of building consents was not as strong in the past year, but the value of the consents was high - up 12 per cent in the last year, which was the largest value increase of the regions," he said.

The value of commercial building permits increased, though there were fewer consents issued.

In the rural real estate sector, sales of farms and lifestyle blocks were strong.

Retail sales increased by 2 per cent from June and 6.3 per cent from the previous year. The percentage increases seemed small but were actually quite important, Mr Edwards said.

Nationally, the annual rate of economic growth eased from 4 per cent in June to 3.7 per cent in September. Business and consumer confidence fell in most regions, while employment and retail sales rose.

Export commodity prices dropped after weaker dairy and forestry prices and the dollar exchange rate depreciated against all our main trading partners.