Positive outcomes from the Canterbury rebuild are flowing through the economy through increased consumption and spending.
The ASB Cantometer index edged up to a new high of 1.4 in March, largely as a result of strong data on consumption.
“A range of indicators improved over the last few weeks, but the most obvious gains were in retail sales and consumer confidence in the region,” says ASB chief economist Nick Tuffley.
“The Retail Trade Indicator showed an 8.7% increase in sales over the year to December 2013,” says Tuffley. “That compares very favourably with an estimated 3.8% lift nationally. In addition, consumer confidence in Canterbury is soaring, second only to Auckland.”
Meanwhile, strong migration inflows continue to boost activity.
“Net international migration showed an inflow of 5,088 people to the Canterbury region over the year to February,” says Tuffley. “That is the strongest annual inflow since the data began in 1990 and will provide much-needed workers for the rebuild effort.”
“The continued improvement in the Cantometer Index reflects broadening economic activity, says Tuffley. “Higher retail spending is a result of population growth, low unemployment and rising confidence – all of which are stemming from the rebuild.
“It’s really a textbook example of how the rebuild is spreading to other sectors of the regional economy.”
