Spending continues to ''accelerate'' across Otago, new figures show.
Paymark figures released yesterday revealed $309.4 million was spent in its network across Otago last month, 8.9% more than for the corresponding month last year.
The two regions with faster annual growth in the 17 Paymark regions across New Zealand were Hawke's Bay (+11.1%) and Bay of Plenty (+10.4%).
The spending in January had ''generally accelerated'' outside the main centres, he said.
The combined Auckland and Northland region had a 5.4% increase and Wellington a 4.8% rise.
Paymark spokesman Paul Brislen said the factors for the increase nationally include a ''stronger'' housing and tourism market.
Chamber of Commerce chief executive Dougal McGowan said more New Zealanders, migrants and tourists were deciding ''to live, work and play'' in Otago and were spending money.
Real Estate Institute of New Zealand, and Otago-Southland spokeswoman Liz Nidd said the housing market in Dunedin was ''strong'' and was limited by the short supply of houses being put on the market.
Potential buyers were flocking to open homes across the city, she said. ''The market is feeling very good.''
Enterprise Dunedin director John Christie said the ''main driver'' for the rise in spending was the increase in ''business and consumer confidence'' in Otago.
People felt secure in their jobs, and in some sectors workers could ''move around'' in an employment market which favoured employees.
Consequently, wage rates in the province were ''steadily creeping up''.
Retail in Dunedin was ''buoyant''.
''It's a lot better than it has been for many years.''
As property prices had ''shot away'' in Otago, it gave home-owners a feeling of ''relative wealth''.
''Even if it is just in capital gain,'' Mr Christie said.
Dunedin Budget Advisory Service executive officer Andrew Henderson said if people could afford to spend, then it was positive for the economy, but he hoped the purchases were not being put on credit cards.
More people with debt began using the budgeting service from late January as they struggled to pay Christmas bills and meet ''back-to-school'' costs.
Paymark accounts for more than 75% of electronic payments in New Zealand.
