Manawatū Quarterly Economic Snapshot – Pipiri //June 2023
The regional economy continues to punch above its weight and business sentiment remains mainly positive.
Manawatū holds a robust economic position proving again to be resilient to the economic pressures at play. Consent levels are up showing continued investment and confidence, employment is strong, and housing is relatively affordable in a national context, which are just some of the factors keeping the region in good economic health.
According to the latest Statistics New Zealand Food Price Index, the cost of food signals a slowing of the annual food price increase. This reduced pattern gives some optimism with the potential for a plateau in the future.
A vibrant employment market balanced with higher incomes in many instances is taking pressure off household budgets, enabling families to ride out current economic challenges. Further to that, record net international migration is easing labour market pressures while supporting core spending across the region.
Construction levels in the region have defied the national trend with values increasing 14.9% over the year to June 2023. This compares with a -0.1% fall nationally.
The value of building consents in our region reached a total of $629.8 million over the year to June 2023. Residential construction increased by 8.9% over the year compared with a 6.5% fall nationally. Non-residential construction values increased by 27% in the region over the year, compared with a 10.8% increase nationally.
“As the investment landscape of the commercial market follows the shift with interest rates, the demand for industrial land continues its momentum as the Regional Freight Hub gets the tick of approval. We expect the non-residential consent growth to continue to rise as Manawatū establishes itself as New Zealand’s central distribution hub under Te Utanganui, attracting both public and private investment.”
– Angus Findlay Commercial and Industry Sales Bayleys