A recent Westpac survey has shown Southlanders' economic confidence holding strong despite the challenges of Covid and rising living costs.

Southland has bucked the nation-wide trend which saw household economic confidence drop steeply across most regions over the March quarter. 

Regional economic confidence is measured by assessing the number of survey respondents who expect economic conditions in their region to improve over the next year, versus those who expect it to worsen. 

Westpac Acting Chief Economist Michael Gordon said the combined impacts of Omicron and the rising cost of living were widespread in the survey result, with all but two regions in pessimistic territory over the quarter. 

Graph showing Southland's economic confidence since 1988. Supplied.

“Southlanders bucked the trend. Still buoyed by record high meat and dairy prices, confidence in Southland households remains comfortably in positive territory,” he says. 

“As Omicron cases peak and as Covid restrictions ease, we expect some lift in regional economic confidence next quarter. However, ongoing rises in the cost of living may temper the magnitude of any recovery.”

Southland has remained at a relatively positive level of +14, largely put down to a healthy agricultural sector, especially in dairy and meat. 

The results see Southland top the regional economic confidence charts for the second quarter in a row. 

Westpac says looking ahead and with the agriculture sector outlook still strong, it is expected for confidence in Southland to remain firm.

Regional economic confidence across New Zealand. Supplied.

Other regions have not been so stable, with Otago seeing a 27-point drop, and Canterbury a 13-point drop in confidence levels. 

Northland was the only region to see a gain, with confidence up 2 points.