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

 


Construction activity again pushes Cantometer to fresh high

Media release

ASB Cantometer Index

EMBARGOED until 5am Wednesday 30 July

Construction activity again pushes Cantometer to fresh high

The ASB Cantometer rose to a fresh high of 1.6 in July.

Non-residential building consents continue to improve while dwelling consent issuance could be starting to plateau.

Continued recovery in Canterbury’s tourism sector.

The Cantometer index rose to a fresh high of 1.6 in July (versus the previous high of 1.5 in June).

“Construction demand remains strong, and continues to be a key driver of economic growth in the region,” says ASB Chief Economist Nick Tuffley. “Particularly encouraging is the lift in non-residential building consents, reflecting continued earthquake rebuilding activity and higher business confidence.”

“Construction growth has flowed through to stronger demand in other areas” says Mr Tuffley. “Car registrations lifted 33% over the past year, as consumers feel more confident about making big-ticket purchases.”

The region’s tourism industry also continues to recover. Mr Tuffley explains, “The high number of passenger numbers passing through Christchurch Airport bodes well for the region’s tourism industry.”

There are emerging signs that dwelling consent issue in Canterbury may be starting to flatten.

“A further softening in the Housing sub-index this month is a reflection of the fall in the number of house sales. While house prices in Christchurch continue to increase and are 7.3% higher for the year to March, the pace of annual house price growth is sitting just below the national average.”

Outlook

Construction growth should continue to lead Canterbury economic activity over the next couple of years, says Mr Tuffley.

“We expect the earthquake rebuild will continue to encourage workers to move to Canterbury, as well as boost further employment demand.”

About the Cantometer

The Cantometer is designed to summarise activity in Canterbury. The study takes a range of publicly 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

ENDS

Embargoed_ASB_Cantometer_July_2014.pdf

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news