Source: MIL-OSI Submissions
Building activity remains high – 5 September 2018
Total building activity volume rose a seasonally adjusted 0.8 percent in the June 2018 quarter, Stats NZ said today.
This rise reversed a 0.8 percent fall in the March 2018 quarter.
The June quarter’s rise adjusts for the effects of higher construction costs and typical seasonal patterns to show underlying changes in the volume of work.
“Both residential and non-residential building activity increased in the latest quarter, recovering from small falls in the March 2018 quarter,” construction statistics manager Melissa McKenzie said.
“Quarterly construction activity has been hovering around the same high level for the last two years, with the total volume being higher than at the previous peak in the June 2005 quarter.”
In value terms (includes price effects), building activity rose a seasonally adjusted 1.8 percent in the June 2018 quarter, compared with the March 2018 quarter. Auckland drove this growth with more non-residential building activity on large projects. These included shops, restaurants, and bars; and hotels and student accommodation.
Other North Island regions also had increased non-residential building values. These regional rises more than offset a fall in Canterbury, as the post-earthquake rebuild continues to wind down.
Note: the June 2018 quarter data predates recent construction company failures.
The rise in the value of building activity coincided with a 4.9 percent seasonally adjusted value increase in retail sales for hardware and building supplies in the June 2018 quarter, with higher sales in Auckland and Wellington regions.
Retail trade survey: June 2018 quarter has more about these increased sales.
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