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New Zealand Q4 Building Volume Jumps 2.7%

Total building volume in New Zealand climbed a seasonally adjusted 2.7 percent on quarter in the fourth quarter of 2018, Statistics New Zealand said on Friday.

That exceeded expectations for an increase of 1.0 percent following the upwardly revised 0.8 percent gain in the previous three months (originally 0.7 percent).

Residential construction volume rose 1.2 percent after a 1.3 percent rise in the September 2018 quarter.

Non-residential construction volume rose 5.0 percent after a 0.2 percent rise in the September 2018 quarter.

The actual value of total building work was NZ$6.1 billion in the December 2018 quarter – up 8.2 percent from the December 2017 quarter.

Growth continued in Auckland region, up NZ$427 million (21 percent) – non-residential work up 29 percent and residential up 16 percent.

“Growth in commercial construction activity was driven by more work on shops and accommodation buildings, particularly in Auckland,” construction statistics manager Melissa McKenzie said.

In contrast, the value of building work in Canterbury fell 8.0 percent from the December 2017 quarter as the post-earthquake rebuild work winds down. However, in the latest quarter, residential work in Canterbury picked up from the September 2018 quarter.

The actual value of non-residential building work was NZ$2.2 billion in the December 2018 quarter, up 11 percent from the December 2017 quarter. In Auckland, the value of non-residential building work grew by NZ$200 million (29 percent) to NZ$879 million.

In the year ended December 2018, the national value of non-residential building work rose NZ$634 million (8.6 percent) when compared with the previous year – driven by a NZ$503 million (19 percent) increase in Auckland.

The material has been provided by InstaForex Company – www.instaforex.com