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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news