Bay of Plenty most optimistic region

The Westpac McDermott Miller Regional Economic Confidence survey found the region's economic prospects fell in the June quarter but remained close to its highest level in five years.

An economic confidence survey has found Bay of Plenty's faith in local prospects has dropped, but the region has become the most optimistic in New Zealand.

The Westpac McDermott Miller Regional Economic Confidence survey found the region's economic prospects fell in the June quarter but remained close to its highest level in five years.

The proportion of households expecting good times for the Bay of Plenty region in the year ahead fell from a net 36 per cent in March to 26 per cent in June. The national average was for a net 10 per cent.

Westpac senior economist Michael Gordon said: "While economic confidence in the Bay of Plenty was down in the June quarter, it is now the most optimistic region in the country.

This position had been held by Canterbury over the past three years.

"So far this year the Bay of Plenty region has seen strong growth in retail spending, house prices and construction, although the jobs market has been relatively subdued," said Mr Gordon.

"The kiwifruit industry has bounced back from the Psa virus, and the harvest is expected to be up significantly this season."

Separately, the regional breakdown of the Westpac McDermott Miller Consumer Confidence Index showed that Bay of Plenty consumer confidence fell from 121 in March to 116.3 in June.

Priority One chief executive Andrew Coker said economic growth in the Western Bay of Plenty, by any measure, was surging.

Unemployment was down to 5 per cent from 7 per cent in 2008/09, there were record building consents, and GDP was more than 30 per cent above the national average.

"Importantly, the growth here is broad-based," Mr Coker said. "The Westpac McDermott-Miller study covers the broader Bay of Plenty, where perhaps people's views are influenced by a stronger representation of dairying, and the challenges that sector is facing."

Tauranga Chamber of Commerce interim chief executive Toni Palmer said:

"A short period of uncertainty is eclipsed by the longer-term view, which is positive. All long-term indicators for the Bay of Plenty are looking exceptional and that is where we need to focus."

The survey was done June 2-13.