Hawke’s Bay has tanked in the latest ASB rankings of regional economies for the 1st Quarter of 2024, dropping 11 places from the previous quarter. Only Manawatu-Whanganui and Nelson ranked lower.
Here’s what ASB had to say:
“Hawke’s Bay has faced the largest stumble down the scoreboard, ending up in 14th place.
“After an exceptional performance in the previous quarter the Hawke’s Bay has experienced lower growth in many segments. The three exceptions; employment, house sales and retail sales grew by 4.4% yoy, 28.7% yoy and 0.1% yoy, respectively.
“House prices took a 0.5% yoy hit, while the rest of the country experienced an average growth of 2.7% yoy.
“Construction has faced a 13.1% yoy decline, primarily driven by residential construction consents falling 17.9% yoy. Non-residential consents dipped 4.4% yoy.
“New car sales fell by 8.7% yoy, potentially driven by the post subsidy environment the country is currently in. A pull back in discretionary spending also likely played a role.
“Consumer confidence in the region’s growth came in below the
national average, speaking to the current conditions hindering the region.
Where to?
“We do see some positive signs for the region, with horticultural exports recovering after the Cyclone Gabrielle-related disruptions. However, the Hawke’s Bay is not immune to the general pressures from restrictive monetary policy so we would expect growth across the components to remain modest at best.”
