The South Island appears to be charting a faster road to economy recovery than the North Island

Kiwibank's new report reveals uneven progress across the region - despite a general uptick in activity.

A drop in interest rates hasn't been enough to turn the tide - with households across the board still struggling with basic expenses

But Chief Economist Jarrod Kerr, says Southland and Otago are performing well - and Christchurch seems to be faring better than its rival major cities.

He says agriculture and a bounce in tourism are playing a part - but it seems the further south you go, the more optimistic people are.