Economic growth in the region, along with the West Coast, increased 2.8% from the previous year, the National Bank regional trends survey has found.
Otago recorded a large rise in employment in March, pulling the unemployment rate back from 5.7% in the preceding quarter to 4.6%.
The number of rural real estate sales increased, underpinned by a rise in farm sales, which hit a two-year high.
New motor vehicle registrations also increased, with the largest rise being one of 26% for commercial vehicles.
The number of house and section sales in Otago dipped 4% and 5% respectively, and the median time it took to sell a house remained at a two-year high.
Otago Chamber of Commerce chief executive John Christie said the survey's findings backed up what he was hearing anecdotally from many business people, and he believed there would be strong growth over the next quarter.
It was pleasing to see the region was not only growing but at a faster rate than other areas.
The indicators were a good sign the economy was poised for further growth, Mr Christie said.
Overall, the nationwide measure of economic activity slipped 0.1% in March, with the Christchurch earthquake resulting in the Canterbury region's largest quarterly drop since the start of the bank's series in 1975.
Economic activity in the South Island dropped 1.7%, while the North Island recorded a 0.3% rise. When compared with the preceding quarter, year-on-year economic growth slowed across all regions.
At -0.2%, Northland recorded the lowest annual average rate, marginally weaker than Canterbury's -0.1% decline.
The ANZ-Roy Morgan consumer confidence measure rose two points in May to 103.3, the underlying message being one of subdued consumer confidence.
Households remained cautious about spending and how they saw the economy as evolving.
While Auckland and Wellington recorded rises in confidence, up six and three points respectively, Cantabrians registered a nine-point fall to their lowest level since March 2009, during the global financial crisis.
