The Westpac McDermott Miller regional economic confidence index showed Otago moving from a net 7% of Otago households expecting to be better off in the coming year in June to a net 24% in September.
In March, a net 12% thought they would be better off.
Westpac industry economist David Norman said the latest confidence reading for Otago was well above the five-year average for the region of just 4% net positive.
"The most recent result is justified given the strength in the Otago economy at the moment. Tourism in particular is growing very well in the Queenstown Lakes District while Central Otago’s horticulture sector is also doing well."
However, the economic outlook was mixed depending where in the region you were, he said.
Although dairy was not as important to Otago as it was to Southland or Canterbury, the region’s economic confidence did seem to have responded to fluctuating dairy prices.
Otago Chamber of Commerce chief executive Dougal McGowan said the Westpac survey backed up evidence he saw throughout winter.
"It is spring, and people start to feel better about things, but this survey shows Dunedin and Otago in a good place. I believe this is the start of a strengthening growth phase which will continue for some time."
The region’s economy was more than just tourism, he said.
House prices and sales were rising, new car sales in the region were up, businesses were positive about their income prospects and there was a "huge" building programme about to start in Dunedin.
Growth continued to rise in Central Otago, and Balclutha and North Otago were starting to feel better about their prospects after three dairy auction price rises and the increased forecast payout by Fonterra.
The official cash rate was likely to be cut in November, which meant interest rates would remain lower for longer.
All that helped the region, Mr McGowan said.
Southland also experienced a boost in confidence in the three-month period.
A net 20% of Southland households expected the regional economy to strengthen over the coming year.
This was a complete reversal from the net 10% of respondents who thought the economy would weaken in the June survey and a further improvement on the net 22% who were pessimistic in March 2016.
Mr Norman said he expected to see a strong bounce in regional economic confidence in Southland.
The region had the highest exposure to employment in the dairy sector of all of New Zealand’s regions and better milk prices were being reflected in regional economic confidence.
In Canterbury, a net 31% of households expected the regional economy to strengthen in the coming year — the strongest result in the region for 18 months.
Canterbury’s regional confidence rose from 26% in June and had experienced two consecutive quarters of rises, he said.
"It is a little surprising residents have such a strong view of the regional outlook given households’ views of their own fortunes are less optimistic."
The rise in confidence might be partly driven by the recent recovery in milk prices as people saw that as having a positive impact on the regional economy.
But Mr Norman warned the economic activity associated with the rebuild after Canterbury’s earthquakes was now past its peak and the gradual wind-down in rebuild work had started.
Nationally, the only region where regional economic confidence fell was in Auckland.
For the third quarter in a row, the share of households optimistic about the future narrowed.
Mr Norman said it could be the result of falling home ownership rates due to house price rises and concerns about household debt levels.
The pessimism came despite growing employment, especially in construction and tourism.
