27 Sep 2011

Dairy boom drives regional optimism

7:13 am on 27 September 2011

The global dairy boom is driving optimism among some regions.

Westpac McDermott Miller's regional economic confidence survey found sentiment continued to improve in most parts of New Zealand in the June quarter.

Optimism in the September quarter was at 22% nationally, well up from the 12% recorded in the July quarter.

Optimism was strongest in Auckland and the key dairy producing regions - Waikato, Taranaki and Southland.

Westpac chief economist Dominic Stephens says respondents are shrugging off fears about a stuttering global economy and he believes that is because the high market prices of earlier this year are now being felt at a local level in New Zealand.

"Farmers being paid now for very strong prices received earlier in the year and perhaps that has buoyed confidence after a hard period."