Scoop has an Ethical Paywall
Cantometer Index holds steady at high levels
EMBARGOED until 0500 Friday November 28, 2014
Media release
ASB Cantometer Index
EMBARGOED until 0500 Friday November 28, 2014
Cantometer Index holds steady at high levels
• ASB Cantometer Index holds steady; just shy of record high
• Construction demand eases, but from very strong levels of activity
• Rebuild boosting demand for workers across the sectors
The Cantometer index held steady at 1.8 in November, just below its record high of 1.9 reached in September.
ASB Chief Economist Nick Tuffley says construction demand eased slightly, with signs of a reduction in construction work in the pipeline.
“That said, construction activity is coming off very high levels. We are seeing strong growth in concrete sales as the foundations are set for new housing and commercial buildings,” Mr Tuffley says.
Canterbury labour market indicators have been mixed. Although wage growth in the region was slower than the national average in recent months, the earthquake rebuild is boosting demand for workers across the sectors, from construction to professional services.
“The stronger labour market is encouraging a lot of workers to move to the region, with net migration into Canterbury rising strongly over the past year. Population growth is supporting higher household spending on items such as cars.”
Outlook
Despite signs of flatter construction activity in the near term, the economic outlook remains positive in Canterbury, says Mr Tuffley.
“We still expect construction activity to remain a key support of Canterbury economic activity over the coming years. Population growth will underpin stronger house-building demand, while demand for commercial building construction will also pick up.”
About
the Cantometer
The Cantometer is designed to
summarise economic 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 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
ASB_Cantometer_Index_November_2014.pdf
ASB Bank
Helping you get one step ahead.
In 1847, ASB opened as the Auckland Savings Bank with the pledge: 'to serve the community; to grow and to help Kiwis grow'. And that is very much what ASB is about today.
ASB is a leading provider of integrated financial services in New Zealand including retail, business and rural banking, funds management and insurance.
ASB strives to consistently provide its customers with outstanding service and innovative financial solutions. They're dedicated to providing simple financial products that allow their customers to bank with them how and when they want.
We all have our own ways to measure progress, and our own stories about the things that matter to us. Whatever way you choose to measure progress, and whatever your goals, ASB is there to help you get one step ahead.
Business Canterbury: Urges Council To Cut Costs, Not Ambition For City
Wellington Airport: On Track For Net Zero Emissions By 2028
Landcare Research: ANZAC Gall Fly Release Promises Natural Solution To Weed Threat
NZ Anti-Vivisection Society: Auckland Rat Lovers Unite!
University of Canterbury: $1.35 Million Grant To Study Lion-like Jumping Spiders
Federated Farmers: Government Ends War On Farming
