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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news