Annual economic growth slowed in all but two regions in the year to March, according to the ANZ-National Bank regional trends survey.
Southland, at 3.4% growth, continues to lead the nation in terms of annual economic growth, with Taranaki moving up to second ranking.
Otago came in equal fourth, on 2.2% with Bay of Plenty and Wellington.
Otago fared better in the March quarter measure of economic activity although there were some disappointing results.
In the accompanying notes to the survey, Otago recorded the largest fall in retail sales in the March quarter.
Employment also suffered a large decline, falling 3.9% in the quarter.
Business confidence undershot the national average, particularly when businesses were questioned on the outlook for their own activity.
Sales of farms and lifestyle blocks fell more sharply than the national benchmark but house and section sales were not as weak as the national decline.
The number of residential building approvals lifted 5.8% and were in contrast to a national fall.
But commercial building consents fell 6.3% compared with a fall of 1.5% nationally.
Overall, the region recorded a slight rise in economic activity in the March quarter of 0.1%, third behind West Coast on 0.9% and Nelson-Marlborough on 0.5%.
ANZ-National Bank economist Steve Edwards said the national economy took a breather in the first quarter of the year.
Fourteen regions reported a decline in activity. On a national measure, economic activity slipped 0.6% in the quarter.
The North Island recorded a 0.7% fall and the South Island dropped 0.3%.
