Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ building work slows in 4th quarter

NZ building work slows in 4th quarter as commercial activity drops 3.9%

March 5 (BusinessDesk) - New Zealand building activity slowed in the final three months of 2013 as non-residential work dropped for a second quarter, offsetting a pick-up in house building.

The volume of building work put in place across all building fell 1 percent in the three months ended Dec. 31, compared to a 1 percent gain in the September quarter, according to Statistics New Zealand. Non-residential work fell 3.9 percent, adding to the September decline of 6.7 percent, while residential work grew 1.1 percent in the quarter, having gained 7.7 percent in the prior period.

The value of work increased 0.6 percent to a seasonally adjusted $3.17 billion across all buildings, with a 2.6 percent decline in non-residential work to $1.27 billion and a 2.5 percent gain in residential work to $2.01 billion.

On an annual basis, total value of building work put in place rose 16 percent to $12.47 billion in calendar 2013 from a year earlier, led by a 28 percent gain in new dwellings worth $6.01 billion. Non-residential building work increased 3.3 percent to $4.89 billion in the year.

Construction is seen as lynchpin for the local economy this year with the $40 billion Canterbury rebuild expected to ramp up this year.

“Weaker-than-expected building activity presents a clear downside risk to our forecast of 1.1% growth in December quarter GDP,” Westpac Banking Corp senior economist Michael Gordon said in a note after the figures were released.

Building activity in Christchurch, where the rebuild is gathering pace, rose a seasonally adjusted 0.7 percent in the quarter, following a 20 percent surge in the September quarter. Residential work climbed 6 percent in the quarter, while non-residential dropped 6.6 percent.

The figures follow new building consents data last week, which showed a decline in permits to build new housing in January, as apartment and retirement unit numbers dwindled from records in the tail-end of 2013.

Rising property prices, particularly in Auckland and Christchurch, became a headache for the Reserve Bank last year, which was loathe to lift interest rates in response for fear of fuelling demand for an already elevated currency. Instead, the central bank imposed restrictions in October on the level of low-equity mortgage lending banks could undertake as a means to reduce the level of riskier loans.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news