Otago has raced up the latest ASB regional quarterly rankings - its leap from seventh place to second underpinned by strong Dunedin house price growth and employment levels among the highest in the country.
Conversely, Southland slipped from first place the previous month to seventh, as its earlier stellar growth gains eased.
ASB chief economist Nick Tuffley said Dunedin, rather than Queenstown, had led the way in boosting Otago to second place out of 16 regional council areas, to a five-star rating for the quarter to December.
"In particular, the Dunedin housing market has found its wings and is propping up an otherwise sluggish Central Otago market,'' Mr Tuffley said.
Jobs are also plentiful in the region: an extra 6% was generated over the year, which was second only to Taranaki's 7.1%.
"On this basis, the good times may roll on to 2019, although we suspect Dunedin may continue to lead the way,'' Mr Tuffley said.
House prices were up 9.4%, the sixth-highest on the index, against the previous quarter, and construction was up 11%, sitting half way on the index in eighth place.
"Given the five-star rating, it's no surprise that Otago folk are happy with their economic lot, topping the nationwide consumer confidence measure,'' Mr Tuffley said.
He said Southland's reign in first place was shortlived, dropping to seventh-equal spot this quarter.
"However, we remain squarely in the glass half full camp with regard to the South,'' he said.
Lamb prices were healthy, dairy would likely receive a boost from rising forecast prices and the housing market was "ticking along nicely''.
"Tourism in the region is also performing well, and without the constraints seen elsewhere,'' he said.
Mr Tuffley expected Southland would be a ``regular feature'' in the top half of the 16 rankings during the year.
Compared to Otago, Southland's employment and retail sales were well down; its house price growth, at 10.8% was more than 1% higher; construction was up 31% against Otago's 11% and both provinces had declines in car sales, at 13% and 10% respectively.
Hawke's Bay takes out this scoreboard's gold medal, with strong retail sales as well as a fantastic summer predicted to boost fruit crops.
The Hawke's Bay region climbed three spots to first place, with "solid numbers across the board'' for the quarter, Mr Tuffley said.
The region had an annual 8.9% lift in retail spending, the highest growth rate in the country, and its housing and construction sectors were also strong this quarter, with house sales and prices both posting double-digit annual gains, and building consents up 38% in annual terms, he said.
The Marlborough region plunged from 10th to 15-equal - alongside Nelson, which fell from 11th - its housing sector being weaker than Nelson's.
