Bay economy rebounds with third increase

Hawke's Bay's economy has expanded for the third consecutive quarter, as measured by the National Bank regional trends survey released yesterday.

The report notes that in the last three months of December farm sales recorded a four-year high, and section sales a two-and-a-half year high.

The residential property market was noted for its lack of "vigour", with the time taken to sell a house lengthening by a week from the previous quarter.

In December, the time to sell a home increased to 61 days, up from 45 days in November.

January's real estate data showed slight improvement, with 50 days to sell a property and monthly sales volumes at a two-year high.

Hawke's Bay was one of eight regions to record an increase in economic activity while six regions registered a decrease.

The largest quarterly gain was measured in Manawatu-Whanganui, which rebounded 1.2 per cent from a weaker September quarter.

The region had enjoyed some of the highest levels of business confidence in the past decade, though consumer confidence fell to a three-year low.

Auckland claimed top position, expanding 2.4 per cent. Northland was the worst region, down 1.2 per cent for the year.

Wellington was down 0.2 per cent, with unemployment at a 16-year high of 7.3 per cent.

For the 2011 calendar year, Hawke's Bay growth was up 1 per cent, ahead of the national figure of 0.8 per cent.

Auckland was highest at 2.4 per cent.