Lift in milk key to region's growth

ASB chief economist Nick Tuffley said the upswing in dairy prices was already starting to boost growth. Photo / Christine Cornege

The dairy price revival is reckoned to be behind a boost in growth in the Manawatu-Whanganui region.

The ASB bank's regional economic scorecard, released yesterday, has the region as the most improved of New Zealand's 16 regional council areas.

It was the biggest mover in the past quarter, up nine places on the scoreboard to fourth place from 13th.

ASB chief economist Nick Tuffley said the upswing in dairy prices was already starting to boost growth.

"The recovery in dairy incomes, paired with a fair outlook for other primary producers, has been positive for Manawatu-Whanganui," he said.

Nelson continues to top the economic scorecard thanks to booming tourism, horticulture and viticulture sectors but Auckland, in 13th spot, is sliding as it hits capacity constraints in construction.

Northland's economy has had a surprising lift in activity after falling for the past two quarters, pushing into second place, with Waikato ranked third. Southland and Canterbury were at the bottom of the pack.

ASB's economic scoreboard takes the latest quarterly statistics and ranks the performance of the 16 areas. The fastest-growing regions gain the highest ratings and a good performance by the national economy raises ratings across the board.

Ratings are based on measures such as employment, construction, retail trade and house prices.