Otago business confidence is at a 10-year high - beyond the national benchmark - as 11 of 14 regions posted gains in economic activity during the last quarter of 2009.
Nationally, the overall economic activity increase of 1.2% was the strongest quarterly gain in five years, with Otago, Northland and Gisborne recording rises above 2% and the Bay of Plenty hitting 2.5%.
Otago booked the largest surge across all regions in employment, pulling its unemployment rate to 4.4%, but conversely, consumer confidence was the lowest in the country, the National Bank regional trends survey found.
National Bank economist Steve Edwards said "Otago recorded its third consecutive quarter of economic growth, with the latest quarterly increase the largest since March 2007," he said yesterday.
During the quarter, Otago rural real estate had posted large gains, farm sales were up and retail sales "perked" by 1.9%, while house sales eased 6.2%, more than the national 5.5% fall, he said.
The underlying driver of the national rebound was increased business confidence, fuelled by gains in retailing, with dwelling approvals being up as well as commercial permits, he said.
He said North Island areas which went into recession three to six months before southern areas and would recover sooner than those in the South.
