Quarterly economic activity around Otago has rebounded 1.8% - well above the national figure of a 0.4% gain.
ANZ senior economist Mark Smith said around Otago there was ''an element of recoil'' over the quarter, with retail sales, house sales, cement production and commercial consent activity rebounding from ''modest'' second-quarter levels.
The ANZ's regional trends survey revealed third-quarter activity increased 0.3% in the North Island, or 3.1% year on year, and in the South Island it was up 0.9%, or 1.7% over a year.
''The strongest rates of quarterly growth were in the top and bottom of the country,'' Mr Smith said.
Activity rose in eight of the nine North Island regions and four of the five South Island regions, with activity falling in Wellington and the West Coast.
Otago Chamber of Commerce chief executive Dougal McGowan said city retailers were reporting a good run-up to the Christmas holiday period, with a ''positive vibe'' around town.
He credited that from a combination of visitors for the Fleetwood Mac concert followed by Ngai Tahu's three day cultural festival, multiple cruise ship visits, and several days of balmy weather.
''There doesn't appear to be any slowing down in the lead-up to Christmas.''
Mr Smith said that Otago annual and annual average growth rates, respectively 2.8% and 3.1%, were close to the nationwide averages.
He said Otago's 0.4% increase in employment was in contrast to nationwide falls, with the Otago region having the second-lowest unemployment rate in the country.
Nationally, the unemployment rate rose to 6%. Canterbury and Otago reported the lowest unemployment rates, with Hawkes Bay the highest.
Readings from the transport and distribution sector for Otago were on a par with those nationwide, Mr Smith said.
''Elsewhere, there were a scattering of quarterly falls, notably for guest nights, dwelling consent numbers and business and consumer confidence, with both confidence reads remaining below the nationwide average,'' Mr Smith said.
The signal from the Otago ANZ Business Outlook composite was for a strengthening of annual growth momentum.
The 0.7% increase in October retail sales was slightly below the 1% nationwide increase, with job ads also on an improving trajectory.
''However, the 6.6% fall in October house sales volumes was on par with the nationwide average,'' Mr Smith said.
While nationally annual growth eased to 2.8%, which is a three-year low, Mr Smith said it was ''still very respectable''.
''Forward-looking indicators suggest a solid pace of expansion will be sustained for most regions, although rates of regional expansion will vary and challenges remain,'' Mr Smith said.
