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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news