1 June 2001 Media Statement

Survey suggests solid start to year

"The National Bank regional survey for the March quarter suggests that the economy got off to a solid start in 2001," Finance Minister Michael Cullen said today.

"It is consistent with the Bank's latest business confidence index showing a net 31 percent of firms are optimistic about their prospects for the next 12 months."

All 14 regions recorded a rise in activity over the three months. Growth across the country was 1.7 percent. The South Island was particularly strong at 2.4 percent compared with 1.4 percent for the North Island.

"The South Island and rural New Zealand recorded their strongest gains since the mid-1980s. This reflects the continuing strength in the rural sector on the back of generally good commodity prices and a competitive exchange rate.

"Looking ahead, the flow-on effects of rising rural incomes, as reflected in the high dairy payout, and the recent reductions in interest rates should inject some fresh economic momentum into urban New Zealand," Dr Cullen said.

ENDS

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