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THE NEW Zealand Government is desperate for newly-arrived migrants to settle in the regions, outside of Auckland, and these regional areas are showing strong growth.
Hawke's Bay, Manawatu and Wanganui businesses enjoyed a strong economic run for the past few months of 2003, with Taranaki and Wellington not far behind.
The latest National Bank survey of economic activity shows improving conditions in all but one region, Gisborne, in the December quarter.
Manawatu and Wanganui were in the top rank, up 1.9 per cent in the quarter, almost double the national average. Hawke's Bay was up 1.8 per cent, topping a stellar year of 4.4 per cent expansion - the fastest regional growth in New Zealand.
Wellington businesses enjoyed above average growth of 1.3 per cent in the December quarter and 3.5 per cent for the year.
In the December quarter, business and consumer confidence rose in most regions, despite a rising New Zealand dollar and higher interest rates hampering exporters.
Manawatu and Wanganui's strong finish to the year was supported by an 11 per cent rise in the number of dwelling permits in the quarter alone, the National Bank survey shows.
Job ads in the region were also up strongly - more than twice the national average.
The Manawatu and Wanganui region accounts for about 5 per cent of national retail spending. Retail sales in February in the region were down almost 11 per cent on the sales in January, according to Bank of New Zealand figures.
In the second half of February, sales in the region were down 2.5 per cent the only region to see retail spending fall in that period.