Growing business confidence and retail sales have unpinned a sharp rise in the latest National Bank regional trends survey.
Economic activity in the December quarter increased 1.2%, which is the strongest lift in five years. Eleven of the 14 regions survyed experienced a rise.
However, National Bank economist Steve Edwards says the rise was underpinned by a boost in business confidence and stronger retail sales, and this may prove to be short-lived.
He says the North Island appears to be recovering faster than the South Island, which fell into recession later.
