The report also found that conditions were still looking better in the far south, with a mixed picture across the country. <\/p>\n
\u201cRural regions, especially those in the south with large dairy sectors, are seeing firmer conditions than elsewhere,\u201d the bank said. <\/p>\n
Westpac’s regional roundup shows economic conditions in some palces are doing better than over. Photo \/ Westpac<\/p>\n
\u201cStrength in the prices for commodity exports<\/a> is boosting earnings in the agricultural sector, and that\u2019s passing through to increased spending in related industries.\u201d<\/p>\n Westpac described Otago, including the Queenstown-Lakes District<\/a>, as the \u201cstar performer\u201d based on results in the report. <\/p>\n \u201cConditions in the region have been buoyed by both the firmness in the agricultural sector, as well as increases in international tourist spending,\u201d the bank said. <\/p>\n \u201cIn contrast, the economic climate remains cooler in urban regions like Wellington. <\/p>\n \u201cOngoing pressure on household finances and related low levels of confidence are continuing to weigh on spending.\u201d <\/p>\n Fewer businesses have reported having to reduce their workforces than earlier this year, the report showed. <\/p>\n But while they are not getting rid of their existing staff, businesses are still reluctant to take on new staff, the report said. Several businesses said they were waiting and watching the economy. <\/p>\n \u201cAmong the relatively low number of businesses that have been looking for staff, many told us that it\u2019s been much easier to find better-qualified candidates,\u201d the bank said. <\/p>\n \u201cNotably, we\u2019re not hearing any comments about pressure on wages (other than what we normally see for highly specialised roles).\u201d <\/p>\n And while some businesses continue to report inflationary pressure on operating costs and margins, those comments have become \u201cless prevalent\u201d than in previous years. <\/p>\n \u201cSeveral [businesses] highlighted large increases in fixed costs, like rates and insurance. However, in contrast to the past few years, those comments about upward pressure on operating costs have become much less prevalent, as have comments about margin squeeze.\u201d<\/p>\nWestpac described Otago, including the Queenstown-Lakes District, as the \u201cstar performer\u201d based on results in the report. Photo \/ Westpac<\/p>\n