NZ: Regional economic confidence bounced back – Westpac

According to the Westpac-McDermott Miller Regional Economic Confidence survey, New Zealand’s regional economic confidence rebounded in the December 2019 quarter, following a series of declines, notes the research team at Westpac.

Key Quotes

“In total, eight of eleven regions reported a gain in confidence, one moved sideways, while two recorded falls.”

“The three large metropolitan regions saw the biggest gains and have effectively closed the gap with the previously more confident rural regions.”

“Dairy heavy regions recorded falls in confidence, largely reflecting broader concerns about the future direction of government environmental policy.”

“Regions with higher exposure to forestry and tourism generally posted small gains.”

“Northlanders are the most pessimistic about the future, followed by households in Waikato and Southland.”

“The most optimistic region is the Bay of Plenty followed closely by Gisborne/Hawke’s Bay.”