The Bay of Plenty has knocked Auckland from top spot as New Zealand’s best-performing region on the latest ASB/Main Report Regional Economic Scoreboard.
The move, up from second place, comes as the Bay continues to out-perform other regions on employment growth and enjoys the benefits of a strong housing market.
The Bay of Plenty has taken top spot on the ASB/Main Report Regional Economic Scoreboard. Photo: File.
ASB chief economist Nick Tuffley says the Bay of Plenty has much to boast about this quarter, as it finally takes first place from Auckland.
“We’re hearing stories about happy, cashed-up Aucklanders moving to the region,” says Nick.
“Indeed, house sales, house prices and construction were all star performers for the Bay of Plenty over the quarter.”
Auckland slipped to joint-second with Northland in the rankings this quarter as a degree of softness crept into their labour market, with employment growth on par with the national average.
Consumer confidence also took a hit, and is sitting at the lowest level in three years.
On the other hand, Nick says strong migration continues to boost Auckland’s population growth, supporting retail and car sales, as well as house prices.
“These factors suggest it is the sheer growth in numbers keeping Auckland churning at the moment,” he says.
“Northland and Waikato are also basking in Auckland’s ‘halo’ effect.”
Waikato’s economy remains strong despite the dairy downturn. In particular, housing is strong, with sales doubling over the quarter compared to a year ago, and house prices continuing to increase.
Taranaki has been downgraded on the scoreboard to two stars as the region continues to struggle due to the twin downturns in dairy and energy.
ASB/Main Report Regional Economic Scoreboard (Q3, 2015):
1. Bay of Plenty
2. = Auckland
2. = Northland
6. = Hawke’s Bay
6. = Otago
9. = Tasman
9. = Nelson
14. West Coast
15. = Taranaki
15. = Wellington