The Whanganui-Manawatu economy is "ticking along nicely", says the ANZ's latest Regional Trends report.
It showed the region had a 3.3 per cent increase in economic activity in the year to September, just below the national increase of 3.7 per cent.
ANZ economist Steve Edwards said the economic indicators for Whanganui-Manawatu placed the region at the "middle of the road" compared with others.
"Paymark transactions, house sales and commercial building permits all had the third fastest growth rates in the past quarter, but other areas such as consumer sentiment and employment were down," he said.
The drop in consumer confidence had taken the region from being one of the most optimistic a year ago to being one of the most pessimistic now.