Southland was leading the ANZ-National Bank regional economic activity index in June, while Otago was lagging, with just marginal growth for the quarter.
Southland's activity appeared boosted by strong rural activity and spending while Otago seemed hampered by low consumer confidence.
In the three months ended June, Southland's economic activity was measured at 2.1%, helped by employment growth by 3% to be 5.5% higher than the same period a year ago.
The region's unemployment rate improved to 3.5%, down from a high of 5.1% recorded in December.
The volume of Paymark transactions in Southland lifted 1.8%, three times the 0.6% recorded nationally.
The number of house sales rose 17% in the three months to June to an 18-month high but the median sale price dropped 3% in the quarter. Farm sales posted a strong rise to the highest level measured in three years and new tractor registrations were up by a third from just three months earlier, to hit their highest level since 2002.
Otago had quarterly growth of 0.8% but it was still ahead of the West Coast, Nelson-Marlborough, Auckland and Hawkes Bay.
The regional economies of Wellington and Gisborne contracted in the quarter.
Employment levels in Otago fell in the quarter from a record high in March but remained 6% above the figure recorded in June last year.
The number of house sales lifted 20% in the quarter to hit a two-year high while the sale of vacant sections lifted to a 12-month high.
Sales of lifestyle blocks underpinned a lift in the rural real estate market. The total number of rural real estate sales lifted to a three-year high, and the number of lifestyle blocks sold in the quarter nearly doubled the weak figure in March.
ANZ-National Bank economist Steve Edwards said business confidence in Otago hit a 12-month high in June, but consumer confidence, although stronger, was one of the lowest regional levels measured in the quarter.
The Bay of Plenty leads the year-on-year economic index at 1.9% with Otago tied for third with Auckland on 1.5%.
Mr Edwards said annual economic growth was weaker in every region. Five regions recorded a negative annual rate of economic growth in the year to June. That was a net slowing from March, when Canterbury was the only region with a negative rate of growth.
The nationwide rate of economic growth was 0.6% in the year to June. The economy of the North Island was 0.8% higher than a year ago while the South Island's contracted 0.1%.
