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

 


Construction activity pushes Cantometer to a new high

30 June 2014

ASB Cantometer Index: Construction activity pushes Cantometer to a new high

The ASB Cantometer rose to 1.5 in June
Canterbury retail spending outstrips the national level
Tourism numbers steadily climbing as Christchurch Airport becomes the fastest growing entry point for Chinese visitors

ASB’s Cantometer index rose to 1.5 in June, hitting a new all-time high of 1.53 before rounding, compared to the previous high of 1.46.

“The largest improvement in recent data was the Q1 Building Work Put in Place survey, which showed a strong increase in regional construction activity,” says ASB Chief Economist Nick Tuffley. “Residential construction increased 31% in Canterbury over Q1, while non-residential construction was up 16%.”

“The encouraging data is not solely construction-related though,” says Mr Tuffley. “Over the last year, retail spending has risen by 7.9% in Christchurch – far outstripping the 3.5% increase nationally.”

Canterbury’s tourism industry also continues to rebound as demand returns.

“Guest nights figures are continuing to climb steadily as lost accommodation capacity is restored. Christchurch Airport is now the country’s fastest growing point of entry for Chinese visitors, a vital growth market.”

Outlook
The improvement seen in the Canterbury economy is showing no sign of slowing down concludes Mr Tuffley.

“The rebuild momentum has taken longer to kick in than initially expected, but recent construction data shows that the ball has really started rolling now. This is working to create a healthy economic environment, with very low unemployment and strong growth in spending flowing through to benefit other sectors of the economy.”

About the Cantometer
The Cantometer is designed to summarise activity in Canterbury. The study takes a range of publically available regional economic data, which are standardised and aggregated into a summary measure. The index has been rebased to zero in June 2010 (the end of the quarter immediately preceding the first earthquake) such that a positive number represents activity being above pre-earthquake levels.

Along with the aggregate Cantometer index, there are five sub categories: Construction, Housing, Employment, Consumer spending and Miscellaneous*. These sub-indices will provide some insight into which sectors are driving the rebuild activity at a given point in time.

For most activity the data reference the level of activity. However, when incorporating wages and house prices into the index we believe levels are less informative. Instead the index uses prices relative to the rest of the country.
An increase in relative prices is a signal for resources to be reallocated to the Canterbury region.

The historical Cantometer series represented on the charts is a simple average of the complete set of data for each month.

*The miscellaneous category includes electricity, car registrations, guest nights and permanent and long-term net migration. A common factor driving these areas will be population growth, and we expect all these indicators to increase as the rebuild gathers momentum.

If you would like to receive ASB updates and reports by email: https://reports.asb.co.nz/register/index.html

Click here for the full report.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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