Top region led in retail sales, house price growth, and construction
ASB Bank’s latest scoreboard has revealed that regions in New Zealand have faced a stable quarter, with three regions holding their table position and a further six moving less than three places.
The ASB Regional Economic Scoreboard Q3 2019 reported that Gisborne retained its top position at the leaderboard, Hawke’s Bay climbed its way back into the top two, while Auckland jumped seven places to third equal following a bounce in consumer confidence. Meanwhile, Northland plummeted seven spots from third place in 10th equal while Nelson dropped two places to the bottom rung of the ladder.
Nick Tuffley, chief economist at ASB, confirmed that Gisborne continued to dominate the leaderboard after spending two quarters climbing from 13th equal. It also led the regions in retail sales, house price growth, and construction on an annual growth basis.
“Gisborne has been on an excellent run with its diverse mix of export industries,” Tuffley said. “It also seems that the impact of the recent weakening of log prices has yet to be felt in the region. Looking ahead, we anticipate that the record meat prices are likely to see the region stay near the top of the Scoreboard over 2020.”
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After falling from the first to fifth last quarter, Hawke’s Bay regained its speed until it was able to reach second place this quarter.
“After a one-quarter hiatus, the Hawke’s Bay is back snapping at Gisborne’s heels on the Scoreboard. Given that the Bay has claimed the silver medal this quarter, our move for the region to retain its five-star rating last quarter has proved justified,” Tuffley said.
Auckland has also proven to be one of the strongest regions in the country as it finally leaped seven places to third equal this quarter after languishing between seventh and 10th place for the last three quarters.
“Auckland consumers were feeling chirpy over the quarter, leading the nationwide consumer confidence measure,” Tuffley said. “Perhaps this buoyancy owes to the housing market showing signs of life, after a prolonged hiatus. On that front and with mortgage rates near record lows, perhaps Auckland may be sizing up Gisborne’s top spot. Indeed, we might get to see Goliath take on David over coming quarters.”
