28 January 2005

Hutt City's Economy Forges Ahead

Hutt City's economy has performed strongly over the past 12 months, with key economic data GDP growth moving into positive figures for the first time in three years, said Kim Kelly, Hutt City General Manager, Strategic Development.

"Information published in the Council's Economic Development Strategy Report shows the City is moving in the right direction across a broad range of economic growth indicators," said Kim Kelly.

The information, sourced from a number of suppliers including Business and Economic Research Limited (BERL) Work and Income and the Council, show:

* GDP grew $62 million (2.2%).

o The local economy was driven by above-average growth in the Sport and Recreation (14.5%), Retail and Distribution (5.3%), Social Services (4.1%) sectors.

o The sub-sector making the greatest contribution to growth was Communications Services with $27 million increase in production. This sub-sector has also performed the strongest since 1997 with an estimated $160 million increase over the 8 year period.

* The number of businesses increased by 3.8% or 289 business activity units.

o Business Services sector lead the way with an additional 120 businesses (increase of 5%).

o The Manufacturing and Building, Recreation Services and Social Services all experienced 4% growth, the Retail and Distribution sector 3%.

* The number of jobs increased by 2.2% or 818 (FTEs).

o Hutt City had the highest percentage increase in the Wellington Region with Porirua City registering 1.9%, Upper Hutt 0.9% and Wellington City a decrease of 1.9%.

o The biggest growth in jobs came from Social Services with 228 more FTE jobs, followed by Retail and Distribution (203), Recreation Services (203), and Manufacturing and Building (186).

* Registered job seeker decreased by 22%.

o This information, sourced from Work and Income, shows that less people are unemployed and under-employed.

o The population services by the Lower Hutt Centre experienced a drop of 29%, Wainuiomata 21% and Naenae 18%.

o Long-term job seekers (greater than 2yrs) decrease significantly with a 32% drop in the population serviced by the Lower Hutt Centre, 28% in Naenae and 25% in Wainuiomata.

o Lower Hutt and Naenae Centres lead the way with the largest percentage drop in those registered for 4 years or more with 19 and 33%.

* The population increased by 0.4%.
* New residential dwellings increased by 28%, with the value of building work increasing by 19% or 33 million.
* Industrial building or alterations increased by 7%.
o This was propelled by a $1.7 million increase in the value of work done on factories.
* There was a decline in Commercial work of 4%.
* Events funded by the Council generated over $5 million in economic activity.

ENDS

© Scoop Media