Manawatū Region Economic Growth Stable

The latest Manawatū Economic Monitor report highlights stable economic growth in the Manawatū region despite the significant reduction in the Fonterra milk pay-out price.

Infometrics gross domestic product (GDP) estimates suggest economic growth in the region was 1.7% in the year to September 2014.

Alan Cockrell, chief executive of Vision Manawatū, noted data showing strong growth in traffic volumes in the region, which increased by 3.9% in the year to September 2014, well ahead of the 2.6% national increase in traffic flows. This is reflected in annual earnings data released by Statistics New Zealand last week. The region’s logistics sector has experienced annual average earnings growth of 6.0% since 2000 compared with the national growth rate of 4.3% for the sector.

A key logistics sector project currently under development in the region is New Zealand Post’s consolidation of its mail processing centre in Palmerston North, which will be completed early next year. Other projects include the recent construction of an inland port at Longburn and work on building several new distribution centres in Palmerston North.

Chief executive of Destination Manawatū, Lance Bickford said tourism spending data showed the region continues to experience strong growth in domestic and international visitor spending. Total visitor spending in the region has increased by 18% from 2013, with strong growth in both domestic and international visitor spending. The latest increase was more than twice the national growth rate of 7%.

The Manawatū Region Quarterly Economic Monitor is produced by Infometrics for Palmerston North City Council and a copy of the full report can be found at pncc.govt.nz

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