Dunedin is going from strength to strength as new figures underscore a prolonged period of "stable growth" for the city.
The latest quarterly report from Infometrics, released yesterday, included provisional figures showing the Dunedin economy grew by 2.7% in the year to September.
That was slightly down on the national growth rate, of 2.9%, but represented the fourth consecutive year in which growth exceeded 2% in Dunedin.
Enterprise Dunedin director John Christie said the "stable growth" allowed the city and businesses to plan ahead with confidence.
It was underscored by other measures, including Statistics New Zealand data showing employment grew 3.9% in Dunedin in the year to February - the fastest rate since 2002 - while the number of people receiving Jobseeker Support dropped 4.8%.
Retail spending was also up, by 5.6% in the last year, and including a $19 million jump in retail spending (to $363 million) in the September quarter, compared with the previous year.
Tourism spending was also up 7.8%, to $759 million in the year to September, which was just below the national increase of 8.2%.
The latest figures also came just weeks after it was confirmed the city’s population had jumped by 1900 in the year to June, pushing the city’s population above 130,000 for the first time.
Otago Chamber of Commerce chief executive Dougal McGowan said the city - like the rest of New Zealand - had been enjoying prolonged growth, driven in part by a "solid" business environment and strong inward migration.
That influx of new arrivals meant more money in the city’s economy, which encouraged businesses to be positive.
But, in Dunedin’s case, the city had also managed to avoid highs and lows which could create uncertainty for businesses in other centres, he said.
"We are a place that’s been pretty consistent, which is a good thing. We tend to avoid some of that boom and bust thing," he said.
Some numbers were down, including residential (-10%) and non-residential consents (-41%), although Mr McGowan said those results were not a cause for concern.
A spike of building activity on the University of Otago and Otago Polytechnic campuses had eased, which perhaps explained the figures, but more work was on the horizon, he said.
That included the Dunedin Hospital rebuild and central city upgrade, which would generate a "considerable spend" and an upsurge in consents, he said.
Infometrics’ commentary on the figures noted the residential consents remained 15% above long-term averages, while commercial work consented last year would keep builders busy for now, and the hospital project would put long-term pressure on capacity within the building industry and the wider sector.
Mr Christie agreed, and said planning how best to cope was already well under way.
