NZ: Building work put in place up 2.7% in December quarter – Westpac

Satish Ranchhod, analyst at Westpac, notes that the New Zealand’s construction activity rose 2.7% in the December quarter, mainly due to strength in the lumpy non-residential category, which was up 5%.

Key Quotes

“Total construction activity rose by 2.7% in the December quarter. That was higher than our forecast for a 1% rise. December’s increase leaves the level of building activity up 3% over the past year.”

“The December gain was underpinned by a 5% rise in non-residential construction. That was above our forecast for a 1% rise.”

“Residential construction rose by 1.2% over the quarter, very close to our forecast for a 1% increase. That rise was also centred on Auckland, where building levels are up 15% over the past year.”

“Home building activity in the rest of the country was up around 6% over the past year.”