Economic activity is picking up on the back of the Canterbury rebuild, but National Bank economist Steve Edwards says growth continues to be patchy.
National Bank's regional trends survey shows nationwide economic activity rose 0.7% in the first three months of the year, compared to the previous quarter.
Activity in the South Island, rose 1.3% underpinned by the rebuild in Canterbury, while growth in the North Island rose by 0.5%.
Mr Edwards says excluding Canterbury, the rest of the economy rose by only 0.4%, and that growth is patchy.
Retail sales have slumped as the Rugby World Cup hangover lingers, and economic growth in coming months is also likely to be affected by the recent fall in commodity prices.