Rising dairy prices are helping to boost economic confidence in the region, according to a new report.
Westpac's latest Regional Roundup survey showed the Manawatu-Whanganui and Taranaki regions were feeling a lot more positive than the recent past. Dairy prices and the resultant payout forecast were rising sharply.
The unemployment rate continued to decline and sat at 4.9 per cent - well below the five-year average of 6.2 per cent.
Tractor registrations were up, suggesting more confidence on-farm, though those figures remained below long-term averages.
The report said positivity was expected to return to the region while dairy prices held up. The unemployment rate should also remain at lower levels through that period.
House prices in Whanganui had increased more in the last year than their total growth over five years, implying earlier falls.
Whanganui Chamber of Commerce president Raewyn Overton-Stuart said she was seeing growing economic confidence in the area.
"I think that's been ongoing for a number a number of months now among businesses."
There was a lot of positivity around Accelerate25, a growth strategy which identified opportunities for growing investment, incomes and employment in the region.
"I think, generally, business confidence is quite high," said Ms Overton-Stuart.
The dairy price was a factor but Whanganui also had a number of new digital businesses and the district was recognised as a good place to move to.
Ms Overton-Stuart said the population was growing and building work and demand for housing was up.
Employment was increasing, though some business were still looking for people with specific skills.
Ms Overton-Stuart thought confidence would continue to build in the district.
The Roundup report said business confidence and hiring were on the rise nationwide and the pipeline of construction work was strong.
Migration, as a major driver of population and GDP growth, remained remarkably strong. Half of the migration growth was due to a reduction in New Zealanders leaving.
The outlook for the country overall was a lot more positive on the back of a happier dairy sector.
Other commodities, such as horticulture, wine and forestry were recording strong export growth.