Commenting on the latest Quarterly Survey of Business Opinion (QSBO), Mr McGowan said the latest data from the New Zealand Institute of Economic Research matched the latest information from chamber members.
''Otago still remains one of the most positive regions and this is despite including the Cadbury [closure] decision. Out data continues to show people in Dunedin are sure of their future and are positive about their employment.''
There were some constraints in the region, with a shortage of staff being highlighted in the Clutha District in particular, he said in an interview.
Asked about why people in Otago remained confident, Mr McGowan said there were plenty of industries still doing well. Tourism, hospitality and construction continued to grow. Central Otago wineries and horticulture remained strong and some firms from the region were providing workers for construction projects outside the immediate area.
It was hard to identify any particular part of the region or sectors that were missing out, although there were probably some, he said.
The latest QSBO showed a modest drop in overall business confidence in the three months ended March. A net 16% of businesses expected better economic conditions over the coming months, a fall from a net 26% of businesses in the previous survey.
The fall in confidence came despite businesses reporting their own activity holding firm, suggesting annual growth in the New Zealand economy would remain firm at about 3% in coming quarters, NZIER senior economist Christina Leung said.
There was an easing in business confidence in regions particularly buoyant late last year. Confidence eased in Auckland, Wellington and Southland but businesses in those regions continued to expect better economic conditions ahead, she said.
BNZ head of research Stephen Toplis said the main theme of the QSBO was inflationary pressures continuing to mount.
Pricing intentions remained lofty, labour shortages were becoming more severe and capacity utilisation had hit a record.
Some commentators believed rising consumer price inflation was all about oil and fresh fruit and vegetables. The QSBO tended to suggest there was more to it, he said.
One of the strongest indications inflation was going past the mid-point of the Reserve Bank's 1% to 3% target range was a net 29% of respondents expecting selling prices to rise.
That was the highest level since September 2014 and consistent with annual CPI inflation of well above the important 2% mark.
''These expectations could reverse rapidly if input cost pressures were to fall but there is no expectation of this at the moment. Moreover, any reduction in input cost pressures by way of reduced labour costs looks highly unlikely.''
Fifteen percent of businesses reported labour was the most significant impediment to increasing sales, well above the long-term average of 10%.
Many also reported difficulty in finding labour. The level of difficulty in finding skilled labour was its most intense since late 2007 and the reported difficulty in finding unskilled labour was not only similar, but displaying a sharp upward trend, Mr Toplis said.
It was surprising the intention to take on more staff had dipped but one conclusion was it was too difficult to find anyone and businesses were starting to look at alternative ways to expand output, such as increased capital expenditure.
In summary, the QSBO was further evidence New Zealand's long period of stable expansion had significant room to run longer.
''The sting in the tail is growing inflation pressures are looking increasingly likely to morph into actual inflation and higher interest rates.
''We continue to stress the inflationary adjustment should be relatively benign, but warn those in denial of its possible occurrence inevitably risk something of a shock.''
