Bay of Plenty has claimed the number one spot in ASB’s Regional Economic Scoreboard for the June 2025 quarter, overtaking all other regions with strong performance across multiple indicators.
The region’s rise was driven by a standout kiwifruit season, resilient job growth, and a lift in household sentiment.
Kiwifruit Harvest Drives Bay of Plenty Economic Gains
“It’s fair to say kiwifruit has brought home the trophy,” said ASB Chief Economist Nick Tuffley. “A strong season has boosted incomes in the Bay, supporting improvements across employment, retail, and housing.”
According to ASB, the Bay of Plenty now holds the country’s highest consumer sentiment, 3.2% employment growth (second in New Zealand), and house sales up 25.8%, though construction activity dipped slightly.
Southland and Otago Round Out Top Three
Southland surged from eighth to second place, buoyed by rising commodity prices and a robust housing market. House prices climbed 3.4% and sales jumped 32%.
Otago retained third, supported by tourism and retail, though housing and construction indicators softened.
“The Bay’s labour market has shown impressive resilience, even as nationwide conditions remain subdued,” Tuffley noted. “With employment growth holding steady and optimism rising, the Bay is set for continued momentum.”
Urban Centres Show Mixed Performance
Auckland improved to fifth place, climbing five spots on the back of stronger retail activity, improving sentiment, and steady construction.
“Auckland showed promising signs of life in the June quarter,” Tuffley said. “Strong population growth and more confident consumers helped lift activity across housing, retail and construction, pushing the City of Sails up five places to rank fifth.”
Wellington, however, slid to the bottom of the rankings. The capital was hit by falling house prices, down 3.3%, and persistently weak consumer confidence amid public sector restructuring.
National Picture: Economic Resilience Amid Headwinds
Nationally, retail volumes rose 0.5% quarter-on-quarter and house sales lifted 3.5%, but export volumes fell 3.7% as global headwinds—including new 15% US tariffs on New Zealand goods—took effect.
“We’re seeing small pockets of warmth in what’s otherwise an economically chilly quarter,” Tuffley said. “Retail spending is holding up, and consumer confidence is showing signs of life. That’s encouraging as we head into the second half of the year.”
Inflation edged up to 2.7% and unemployment rose to 5.2%. The Reserve Bank’s August 25bp rate cut and a further 50bp signalled may offer some relief in the months ahead.