However, ASB chief executive and managing director Barbara Chapman said the future was looking bright - Otago was just taking longer to see it.
In Queenstown this week, Ms Chapman told the Otago Daily Times Otago presented an "interesting picture".
"The rural sector is doing very well, house prices are recovering, but business confidence is still quite low.
"Otago and Southland are very different."
The Consumer Confidence Index showed Southland at 124 - significantly higher than the national average of 112 - and well up on its June confidence rating of 111.3. A reading over 100 indicates there are more optimists than pessimists.
In September, 57% of Southlanders were optimistic about prospects for next year, up from 52% in June.
"Southland is the most confident part of New Zealand," Ms Chapman said.
"People in Invercargill have got it sussed - Otago is still a little slow.
"Maybe the money is just taking a bit longer to trickle through ... Maybe they're naturally more cautious [in Otago]."
The index said households in the Otago region remained "particularly downbeat" about their financial situations, while Southland boasted a strong local economy and the lowest unemployment rate in New Zealand, so it was "little wonder" Southland consumers continued to be the most confident in the country.
Speaking to the ODT in Queenstown, Ms Chapman said it was possible the lack of confidence stemmed from lower-than-expected visitor numbers to parts of Otago during the Rugby World Cup.
Southland hosted Scotland, Romania, Georgia and Argentina during pool play of the tournament, while Dunedin hosted England, Argentina, Georgia and Romania, along with thousands of supporters.
While Queenstown hosted England, Ireland, Argentina and Georgia, the supporters did not, as expected, follow their teams to the resort, with many businesses missing out on a much-needed boost during the shoulder season.
"It's [possible] that's got something to do with confidence.
"If people were expecting a boost and it didn't happen, that will make people feel a bit flat.
"If people are feeling confident, they're more likely to grow - either buying or expanding.
"If you're not confident you will just stick with what you're doing."
However, there was every indication the economy was recovering, largely because of a buoyant rural sector, Ms Chapman said.
"There's a global demand for food and protein and New Zealand has the ability to deliver [from] pasture, rather than food.
"It gives us a cost advantage and a quality advantage.
"Demand for protein will outstrip the supply probably over the next two decades.
"That creates quite a rosy picture for New Zealand ... If farmers are doing well, that money will trickle down [to other sectors].
"Meat prices are really strong - forestry, fishery, everyone is doing really well.
"It's a great spot to be in - you wouldn't have said this three years ago,"
Ms Chapman said.
She said the rural sector was worth about 10% to ASB and farmers were making the most of low interest rates to pay off their principal.
Farmers were at the point where their debt was more manageable and so many were looking to reinvest.
"The rural sector has been quite cautious over the past three or four years ... but the long-range forecast of food production globally is looking really good for New Zealand."
An indication the positive outlook for farmers was beginning to trickle down was an increase in first-home buyers, particularly in Queenstown, Ms Chapman said.
While typically there was a lift in activity in spring and summer, there had been a 10% lift in residential sales between January and September this year, compared with the same period last year, and an increase in value of 22% over the same period.
"It [the economy] is coming back.
"We're seeing that in house values."
Real Estate Institute of New Zealand Queenstown spokesman Kelvin Collins said October figures showed a median house price of $475,000 - the lowest of any month for 2011, but it reflected "stronger than normal" sales volume below $500,000, "predominantly to first-home buyers".
"We are also seeing small investors re-entering the market."
A feature of the market last month was continued demand for high-quality sections, with six sales of sites over $500,000.
"This is a good sign for the building industry, with most of these buyers proposing to build their dream home.
"Where property is well-priced there is strong interest and often multiple offers, which reflects a growing pool of buyers and limited new listings," Mr Collins said.
Ms Chapman was appointed as head of ASB operations in March, also becoming a non-executive director of Sovereign Assurance Co Ltd's parent company, ASB Group (Life) Ltd, after a five-year secondment with parent company Commonwealth Bank of Australia.
She holds a bachelor of commerce degree and a diploma in industrial relations and was the inaugural winner of the TVNZ Marketer of the Year Award. She is also an inductee of the New Zealand Marketing Hall of Fame, a past chairwoman of Oxfam New Zealand, past director of Oxfam International and past chairwoman of the New Zealand Equal Employment Opportunities Trust.
