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

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news