No recession here

16/07/2008

While city papers are full of stories of impending doom, The Oamaru Mail front page lead is headline: No recession here.

The Herald reports that motor vehicle retail sales dropped nearly 15% from April to May and 11.6% since last September.

But the Mail (not on Line) reports that North Otago sales are still holding up.

… Peter Robinson manager of North Otago Motor Group said Oamaru was bucking the trend despite rising fule prices and talk of recession.

“We are definitely going better here and talking with counterparts, it seems the rural and provincial guys are feeling better than the city guys…

He said the company had seen a  rise in sales since last year and had already sold 15 vehicle s this month.

“For us in North Otago it’s driven off the back of good agricultural returns. That puts a positive spin on everyone’s business and it flows through to us.”

Mr Robinson said he expected things to get even better due to good conditions in the agricultural sector and tax cuts expected later in the year.

A vehicle dealer we spoke to in Ashburton at the weekend was equally positive about business in Mid Canterbury and he too credited agriculture for it.


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