Otago fared exceptionally well with increasing employment and tourism guest nights for the quarter to September, but its overall regional performance was lacklustre among the country's 16 regional council areas.
The quarterly ASB regional economic scoreboard ranked Otago as one of 13 areas of the 16 gaining an overall two-star rating, out of a possible five.
ASB chief economist Nick Tuffley said the "great Australian ski invasion" boosted Otago guest nights more than anywhere else in the country and employment was "going gangbusters" at 10%.
While 10 regions scored 1% or less in employment, Otago was the top achiever with 10% employment, but this was dragged down by weak retail trade of about $697 million, or annual growth down 3%, and housing prices were below average at $296,000 at 0.2% annual growth.
"Otago's housing market performance has been below average, but is far from being the weakest region," Mr Tuffley said.
Only six regions recorded positive housing growth figures, and Otago's -1.4% paled in comparison with Northland's -6.8% and the -4.5% growth in Taranaki and the West Coast.
Auckland and Canterbury were top scorers with three stars, with Auckland house prices increasing and retail spending being revived - up 6% at $3.9 billion for the quarter.
Canterbury's retail spending was above average, up 5% at $1.4 billion, while its housing market was lagging but otherwise "edging up", Mr Tuffley said.
