Rising interest rates and increases in the cost of living caused a lack of consumer confidence and spending last year.

But workers in all income brackets will reap tax savings, thanks to the federal government budget released in May.

Increased childcare and education rebates also will put more money in hip pockets.

NSW Business Chamber regional manager Kellon Beard said the previous 12 months had been “very tough in most sectors”.

But wins from state and federal governments “will hopefully increase spending”, he said

Mr Beard is hopeful the Sovereign Hills development, on the western fringe of Port Macquarie, will increase spending.

“It will create more housing, bring new people to the area, make more money and kick off the building industry, which has been very slow,” Mr Beard said.

Port Macquarie-Hastings Council economic development officer Trevor Sargeant agrees the region’s economic future is bright.

“It is unquestionable we should be very optimistic about future economic times; this area has a great deal going for it,” he said.

“For the last five years the economy has grown at 8 per cent per annum and, for the first time, exports have exceeded imports – an outstanding result for this area.

“No longer are we a drain on the national economy.”

Expansion of dedicated “zones’’ in the town – such as educational facilities at the Widderson St TAFE campus and a medical domain near Port Macquarie Base Hospital – provided positive economic prospects.

But more government support was needed to bolster the area’s economy.

“What is sorely needed in the federal and state political system is a much stronger focus on regional economic development,’’ he said.

“There is a great veil of silence from both governments in terms of what they are going to do to assist this enormously important component of the Australian economy.”

Port Macquarie Chamber of Commerce executive officer Hadyn Oriti believes tax cuts will benefit business. But they may not be enough to stabilise consumer confidence, which translates into spending.

“I would hope the cuts flow through into increased confidence but a large portion of our community are on fixed incomes and may not see the full benefit,” Mr Oriti said.

A partner at Port Macquarie Compass Financial Services, Robert Delepervanche, believes “people need to try to find positives’’ to maintain a strong economic future for the area.

“We have positive super changes, tax cuts and our economy is fairly good in comparison with the rest of the world ... fundamentally our standard of living is good,” he said.