Timaru Reports Economic Growth with 1.2% GDP Increase

The latest report from Infometrics reveals a positive trend for the economy of Timaru, with the gross domestic product (GDP) for the September quarter of 2025 showing a growth of 1.2% compared to the same period last year. This increase surpasses the national average of 0.9% for GDP growth during the same timeframe. Despite this quarterly improvement, the overall economic performance for the year leading up to September reflects a slight decline of 0.3% in Timaru’s GDP.

Business Confidence on the Rise

Nigel Davenport, chief executive of Venture Timaru, expressed optimism regarding the recent data. He noted that, while the improvement in the September quarter was modest, it indicates a positive shift in the local economy. “The figures also show a greater level of business confidence, with a small increase in the number of businesses in the area, rising by 1.2%, and a notable jump of 8.6% in commercial vehicle registrations,” Davenport stated.

The agricultural sector remains a key driver of Timaru’s economy, with significant increases in lamb and beef prices. Additionally, the dairy sector has shown resilience, contributing substantially to the local economy. Davenport highlighted that the expected payout for the 2024-2025 dairy season is projected to be $150 million higher than the previous season, underscoring the agricultural sector’s critical role in the district.

Mixed Messages from the Construction Sector

While some sectors show promising trends, others reflect challenges. The report indicates that the value of non-residential building consents issued in the year leading to September stands at $62.9 million, which marks a decline compared to the previous year. Nationally, a decrease of 1.9% in non-residential consents has also been recorded. The ten-year average for these consents in the Timaru district is $55.9 million.

The housing market is beginning to recover, evidenced by a 12% increase in sales. Nevertheless, the closure of the Smithfield plant has had lingering effects, including a slight drop in employment among Timaru residents and an uptick in the number of individuals receiving Jobseeker Support. Despite these challenges, Timaru’s unemployment rate of 4.4% remains below the national average of 5.2%.

As Timaru navigates these economic developments, the positive indicators in business confidence and agricultural performance may provide a foundation for recovery and growth in the coming months.