5 days ago
- Business
- Otago Daily Times
Agriculture bolstering economy
Clutha Development chief executive Linda Moore. Photo: supplied
Anticipated record dairy payouts are helping Clutha's economy buck the national downward trend, new figures show.
Regional development organisation Clutha Development has released the latest economic results for the district, which show a strong agricultural sector bolstering modest overall growth.
Infometrics' Quarterly Economic Monitor showed economic activity in Clutha rising by 0.5% in the year to March 2025, outperforming the national economy, which shrank by 1.1%.
This was underpinned by a record forecast dairy payout for 2024-25.
The dairy sector is expected to inject $434 million into the local economy — an increase of $103m on last season.
Meat prices are also contributing to rural confidence, as lamb and beef prices rise 10% and 15% respectively.
Clutha Development chief executive Linda Moore said the report reflected the underlying strength of the district's primary industries.
''This quarter's results show Clutha is in a strong position. Our rural sector continues to perform, and we're seeing confidence return to the housing market and resilience in our local labour force.''
Despite subdued conditions nationally, Clutha's employment grew by 0.4% during the past year, while the national average fell by 0.9%.
The local unemployment rate sits at just 2.4% — less than half the national figure of 4.9% — reflecting the district's continuing tight labour market.
There were also signs of recovery in Clutha's housing market. House values rose 4% during the past year to an average of $327,557, supported by a 16% increase in sales volumes.
And while Ms Moore said tourism and consumer spending were areas to watch, the fundamentals of Clutha's economy remained strong.
Consumer spending was down 3% for the year, against a 1.4% drop nationally, although the latest quarter showed this to be easing.
Tourism growth had started to ''dry up'' nationally — Clutha's tourism spend dropping by 4% to $97m against zero change nationally.
''We know households are being cautious, but there are clear signs of stability and even optimism.
''We're well placed to make the most of future opportunities, particularly as interest rates ease and confidence grows.''
Clutha Development is conducting its annual business confidence survey now.
''While the statistics tell a positive story, we're keen to hear directly from our local business community. Their insights will help us understand how the national trends are translating into day-to-day experiences here in the district.''
She said Clutha Development continued to work with local businesses and industry groups to ''build resilience and support growth''.
