Gross domestic product for the city fell 0.6% in the 12 months to June this year, compared with an increase of 0.3% across the Otago region, Infometrics provisional statistics said.
The national decline in economic activity was 0.2%.
Dunedin’s GDP pullback was driven by weaker construction, retail and transport industries, Infometrics said in a report for the Dunedin City Council’s economic development committee.
Employment grew 0.6% in Dunedin, but it was up 2.8% in Otago and 2.1% across New Zealand.
The city’s largest industry, healthcare and social assistance, led employment growth, adding more than 600 jobs since June last year, Infometrics said in its quarterly economic monitor.
"However, around half of all industries experienced a pullback in jobs, including retail, professional services and construction, which have all been hit hard by weak economic conditions.’’
The number of business units in Dunedin reached an annual average of 12,433 in the year to June, up from 12,316 the previous year.
Business units grew by 0.9% in Dunedin, 2.4% in the Otago region and 1.5% in New Zealand.
Dunedin had just a 3.5% increase in Jobseeker Support recipients, compared with a national increase of 10.9%.
Infometrics commented on the national economic situation.
"The economy is clearly weaker, with households tightening their belts as job security deteriorates, unemployment rises, and businesses report lower sales and limit further hiring.’’
Economic sentiment remained poor.
Dunedin’s consumer spending growth of 2.1% was slightly above the national rate of 1.9%, as well as Otago’s growth of 1.2% — all below the rate of inflation of 3.3%.
Personal tax cuts from July 31 "will provide households with some additional funds to ease the cost-of-living pressures but may not make a material difference for most’’, Infometrics said.
Various other metrics showed a mixed picture.
Tourism expenditure was up 3.4% in Dunedin, down 3.6% across Otago and up 1.8% in New Zealand.
Guest nights were down 1.5% in Dunedin, up 6% in Otago and up 5.3% through New Zealand.
Infometrics said expenditure nationally had been weighed down by easing domestic tourist spending and the international tourism recovery slowing.
"Weak economic conditions are constraining domestic travel, too, as cost-of-living pressures make discretionary spending scarcer.’’
Vehicle registrations were down across the country, but not as sharply in Dunedin.
Commercial vehicle registrations declined 11.6% in Dunedin, 24.5% in Otago and 21.5% in New Zealand.
Electric vehicle registrations declined 11.3% in Dunedin, 19.8% in Otago and 26% across New Zealand.
Car registrations were down 6.6% in Dunedin and the Otago region and 11.7% in New Zealand.
