Hawke's Bay slumps to near bottom | Hawkes Bay News | Local News in Hawkes Bay

Hawke's Bay has scored a "take pity" bottom ranking in the just-released ASB/Main Report Regional Economic Scoreboard.

The quarterly report says Hawke's Bay has slipped from the middle of the pack to be close to the bottom of New Zealand's 16 regions.

"This reflects weakness in its household sector, with a decline in retail sales, house prices and residential construction in the region over the past year," the report said.

"The rebound in the number of visitors to the wider Gisborne and Hawke's Bay region, as reflected in the increase in guest nights, is one bright spot. Nonetheless, the overall weaker outlook of the region sees it slip to a one-star rating in the latest scoreboard."

The report gives regions a 1 to 5 star rating based on factors such as growth in population, employment, retail trade, consumer confidence, house prices, construction, new car sales and share of the national economy.

Auckland was the only region awarded four stars, with a "firm grip on top spot" with construction activity improving.

Manawatu-Wanganui was bottom of the table. While its consumer confidence was high "economic activity is weaker than the rest of New Zealand across the board," the report said.

Only Manawatu-Wanganui, Northland and Hawke's Bay were awarded one star.

Hawke's Bay Chamber of Commerce CEO Murray Douglas said the bad report was no surprise. "One quarter does not make the end of the world, but it does describe what we have to do, which is get out there and get the economy better organised."

"Structurally we have systemic problems which have been obvious in three years of statistics. We have to deepen and enrich our economy - we know that. We have to get on the front foot and not be battered about by global winds. It is not a simple pink pill, you don't just wave your hand and it will change tomorrow - it is hard graft."

Mr Douglas said there was some good news. Some parts of the economy were doing well and local councils were making job growth a priority in their long-term plans.

Business Hawke's Bay will be the flagship for future economic growth, he said.

The regional development agency will be officially launched next year on February 29, Leap Day.

The symbolic date is deliberate. "That's the sort of activity we have to do," Mr Douglas said.

Global economy slashes national growth forecast, Business, p8