22 Aug 2009

Signs of economic recovery, regional survey shows

7:02 am on 22 August 2009

Economic activity increased during the three months to June, the first rise since 2007, a National Bank regional trends survey shows.

Nationwide, aggregate economic activity rose 0.4% in the quarter.

Bay of Plenty led the way, growing 2.4%, while at the other extreme Wellington dropped 0.7%.

For the year to June, the survey revealed a 1.8% fall in economic activity - the weakest recorded annual rate since the mid 1970s.

National Bank economist Steve Edwards says the increase in economic activity in the latest three-month period was a rebound from previous poor figures, in that the eight regions that posted rises had recorded falls in the March quarter.

However the figures represent the first positive outcome since end of 2007, he says, and provide evidence of the beginnings of a recovery.