Rebuild-wary Cantabrians

Cantabrians’ confidence in the region’s economy fell sharply near the end of 2016.

The December Westpac McDermott Miller Regional Economic Confidence survey found a net 14 per cent of Cantabrians expect the region’s economic fortunes will improve over the coming year – the lowest level in four years.

Westpac acting chief economist Michael Gordon said Canterbury’s economy was changing after years of strong growth supported by reconstruction activity after the earthquakes in 2010 and 2011.

Reconstruction was now well advanced and had begun to wind down, he said. The November 2016 earthquakes in Kaikoura had also knocked regional confidence.

At the same time, tourism had strengthened, Gordon said.

‘‘This combination of conditions means economic activity in Canterbury remains strong, but the pace of growth is likely to be slower than in recent years.’’

The survey also found consumers were slightly more confident about their own financial situation and their willingness to buy a major household item.

‘‘Cantabrians remain upbeat about their personal economic situation. However, they are conscious that the peak in activity associated with the rebuild is now past.’’

While slower growth was on the cards, the highly planned nature of the rebuild and its gradual winddown allowed people to plan for change, he said.

The survey was conducted from December 1 to December 10, 2016.