Horowhenua's Economy Emerging from Recession

Friday, 25 June 2010

Horowhenua’s economy has bounced back from the recession and outperformed the national economy against most indicators, according to the latest Infometrics quarterly report commissioned by Horowhenua District Council.

Prospects in the construction industry are improving. The number of residential consents in the year to March 2010 increased to 91 from 83 a year earlier. The number of building consents in Horowhenua increased 9.6% during the year to March 2010, compared with the same period a year ago.  Growth was higher than for the Manawatu-Wanganui region (-1.8%) and higher than New Zealand (-5.3%). 

The Horowhenua property market has made a steady recovery with house sales increasing 43% and prices 2%. This underpins an improvement in confidence, reflected in a healthy increase in retail sales.

In the year to March 2010, employment in Horowhenua decreased 1% compared with the previous 12 months. Its decline was smaller than in the Manawatu-Wanganui region (-2.1%) and New Zealand (-1.8%).

Economic output in the Horowhenua grew 1.2% in the year to March 2010 compared with the previous 12 months, with a strong contribution from the agricultural sector. 

The labour market is lagging behind the economy. The number of registered unemployed job seekers rose to 1,460 in the March 2010 quarter, up from 1,090 in the March quarter 2009. The unemployment rate rose to 8.4% from 5.6% a year earlier.

Mayor Brendan Duffy is pleased with the latest Infometrics quarterly report.

“The recession has been difficult for many people in the Horowhenua over the last 18 months but these latest results show very promising and positive steps towards an economic recovery in Horowhenua,” he says.

“Increasing residential construction sales figures are pleasing. Once commercial activity improves, we should see a full return to the level of building activity seen in 2007.

“We should not underestimate the significant contribution agriculture makes to our economy in both gross domestic product (GDP) and the numbers employed in the sector,” says Mayor Duffy.

“While the number of unemployed has increased in the last quarter, I am confident that as the agriculture and construction sectors have consistent activity growth over the next six months, we should see these sectors begin to re-employ.”

A full copy of the Infometrics report can be obtained by contacting David Clapperton, Strategic & Corporate Services manager, or by email to davidc@horowhenua.govt.nz.