Regional economic performance: Wellington top, Northland bottom

The outlook isn't encouraging

NORTHLAND, Manawatu-Wanganuiand Otago are the worst performing regional council areas according to the ASB Regional Economic Scoreboard (RES), issued for the last quarter.

The RES takes regional statistics and ranks the economic performance of New Zealand’s 16 Regional Council.

The fastest growing regions gain the highest ratings, and a good performance by the national economy raises the ratings of all regions. Ratings are based on measures such as employment, construction, retail trade and house prices.

In Northland, says the report, "House prices are declining, and the construction outlook is particularly weak. The unemployment rate up north is higher than anywhere else at the moment, and employment is declining. Car sales are down, but in contrast, retail trade is looking good compared to elsewhere."

Wellington and Canterbury are the best perfoming regions. The report says, for Wellington, "Consumer confidence is relatively high, retail spending growth is above average, and construction is up on a year-ago. Employment is up on year ago levels, but the unemployment rate is starting to rise. House prices are declining, but by less than elsewhere."

For the country as a whole, employment is holding up better than some expected but unemployment is rising, and will get higher in 2009 as the recession bites. Wages growth continues, but is moderating.

Meanwhile, house prices are down and property is taking a long time to sell. Both residential and non-residential construction is weak. "The outlook isn't encouraging," says the report.

Full report available here: ASB News and Reports