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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news