Downturn not so bad in our region

BY LAURA BASHAM

We're doing OK. That's the reaction to economic indicators on how the Nelson-Marlborough region is faring.

The National Bank's latest regional trends report shows the region had the largest increase nationally in retail sales in the September quarter.

Uniquely Nelson co-ordinator Rowena Richards said today retailers were pleased that Christmas shopping had started at the weekend.

"You couldn't get a space in Buxton Square car park on Saturday, and shops I visited in Trafalgar St, Hardy St and Fashion Island were busy. The retailers said it was like someone had switched on the light and people had started Christmas shopping."

Nelson had been somewhat sheltered in the recession, and while some shops had closed, it was not as many as in other regions, she said.

Businesses had worked on their service techniques. "They realise there are things we need to do to keep our heads above water," she said.

The report showed new car and commercial vehicle registrations were also up, and so were building approvals. On the jobs front, unemployment is up.

Overall, the region recorded an annual economic decline of 1.3 per cent, which was fourth best in the country.

Nelson Regional Economic Development Agency chief executive Bill Findlater said that wasn't too bad.

The increase in retail and car sales showed people were feeling more confident about the future. Unemployment was usually highest at this time of year. "I've no concern about that and we're still tracking the lowest unemployment in the country."

Seasonal labour demand would soon pick up, he said. "We're doing OK. We have to keep our feet on the ground.

"It's still difficult.

"Pipfruit growers are having a horrendous time with their returns and that will have an impact. However, they still have to prepare for next season's harvest and will need labour. They're resilient and will weather it."

The Student Job Search website shows 150 berry-picking jobs available in Richmond next month.

The National Bank report said both new car and commercial motor vehicle registrations in Nelson-Marlborough recorded strong increases, lifting 23 and 6 per cent respectively.

However, the largest top-of-the-south dealer, Shane Drummond, said those figures appeared exaggerated. Autofile industry reports for October showed new passenger and commercial sales in Nelson down 33.9 per cent in a month from 62 to 41 units, and in Blenheim down 31.4 per cent from 51 to 35 units, he said.

Nationally, the report said retail sales were flat, with Wellington recording the largest fall, but business confidence improved in every region. House sales increased in most regions, and unemployment reached a nine-year high of 6.5 per cent.

HOW ARE WE DOING?

Nelson-Marlborough

Largest rise in retail sales, up 1.8 per cent.

New car registrations up 23 per cent.

Commercial vehicle registrations up 6 per cent.

Number of lifestyle-block sales up 40 per cent.

House building approvals up 7.2 per cent.

Commercial building consents up 5.6 per cent.

Employment down 0.9 per cent.

Unemployment rate 3.2 per cent.

Annual economic growth -1.3 per cent.

– National Bank report

- © Fairfax NZ News