NZ: Construction activity picked up in the December quarter – Westpac

New Zealand’s construction activity picked up in the December quarter, rising by 1.4% and that comes on top of a solid increase in the previous quarter, points out Satish Ranchhod, Senior Economist at Westpac.

Key Quotes

“However, with softness earlier in 2017 (especially in terms of non-residential construction), building levels are only up 0.6% over the past year.”

“December’s increase was mainly related to a lift in non-residential building. Residential construction eased back a little through the quarter, though it remains at an elevated level.”

“We are continuing to see stark regional differences in construction activity. While activity in Canterbury is easing back, it is rising in other regions including Auckland.”

“With a large pipeline of planned work, the level of construction activity is likely to be elevated for some time. However, headwinds in the construction sector mean that future increases in building activity are likely to be more gradual than we have seen in recent years.”