More Expensive Buildings, but Cheaper Vehicles

16 May 2006

More Expensive Buildings, but Cheaper Vehicles

The Capital Goods Price Index (CGPI) recorded its twelfth consecutive quarterly increase and rose 0.8 percent in the March 2006 quarter, Statistics New Zealand said today. The residential buildings index and the non-residential buildings index recorded increases, but the transport equipment index fell, the only asset group that recorded a decrease.

The residential buildings index rose 1.0 percent in the March 2006 quarter, making the most significant upward contribution to the CGPI for the eighteenth consecutive quarter.

Respondents cited increasing prices for construction components, higher prices for fittings, increased sub-contractors’ charges and increased labour costs as reasons for the price increases in the index. In the year to the March 2006 quarter, the residential buildings index rose 5.9 percent.

Another significant upward contribution to the CGPI came from the non-residential buildings index, which rose 1.7 percent. Increasing costs of construction components and raw material prices were the main drivers for the increase in the index this quarter. From the March 2005 quarter to the March 2006 quarter, the index rose 4.5 percent.

The transport equipment index fell 0.6 percent in the March 2006 quarter, the only asset group that contributed a downward effect to the CGPI this quarter. Price falls for commercial vehicles and cars were the main contributors. In the year to the March 2006 quarter, the transport equipment index fell 1.7 percent.

Annually, the CGPI rose 3.1 percent from the March 2005 quarter to the March 2006 quarter. This follows rises of 3.6 percent in the year to the March 2005 quarter, and 2.5 percent in the year to the March 2004 quarter.

Brian Pink

Government Statistician

ENDS

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