Another period of strong economic growth has Otago well set up for the coming year, says Otago Chamber of Commerce chief executive John Christie.
Mr Christie said his optimism was based on strong economic activity across all industries in the region, but which was underpinned by the rural sector, specifically dairy and associated servicing businesses.
Growth in student numbers and tourism had contributed, while he described manufacturing activity as ‘‘solid''.
He was commenting on a National Bank regional trends survey, which said the Otago economy grew 1.7% in the December quarter, placing the province fourth out of all regions behind Taranaki (3.3%), Northland and Southland (1.8%).
The National Bank attributes Otago's growth to booming real estate activity, with farm sales increasing 23%, house sales 13% and lifestyle blocks 7% compared to the September quarter.
A 17% increase in commercial construction consents was three times the 5.4% growth in the number granted nationally, while employment grew at 2.3% compared to the national figure of 1.1%.
Surveys showed that Otago businesses were also confident for that period. Countering those positive trends was a 7.9% fall in the number of job advertisements, a 3.1% decline in the accommodation guest nights and an easing in consumer confidence ,which was reflected in a 2.5% drop in retail trade compared to a 0.3% increase nationally.
Twelve of the 14 regions monitored grew in the quarter, with the South Island growing at 1.1% compared to just 0.5% in the North Island.
Mr Christie said he was not surprised by the bullish result, saying it reflected chamber surveys and comments from members.
‘‘The region is in good heart right across all business sectors. We are seeing year-on-year growth, which bodes well.''
In the year to December, Otago and Canterbury jointly grew 2.8%, the seventh-best performing regions, after Southland (3.7%), Bay of Plenty and Nelson-Marlborough (3.6%), Waikato 3.2% and Wellington (3%).
The dairy boom was reflected in Southland's quarterly results with a 20% increase in commercial construction consents granted, but compared to the previous quarter resident dwelling consents slipped and there was less real estate activity.
Consumer confidence was the weakest nationally despite the 1.5% unemployment rate being the lowest in the country.
