New Zealand home building declines for ninth straight quarter
The housing market has also been sluggish for the past six months while building consents in the 12 months to January fell 7.2 per cent from a year earlier
NEW Zealand residential construction slid to the lowest in more than four years last quarter, suggesting the economy’s rebound from recession will be modest.
Spending in constant prices – a measure of volume – fell 4.9 per cent from the third quarter to NZ$4.5 billion (S$3.4 billion), Statistics New Zealand said on Thursday (Mar 6). That’s the lowest level since the second quarter of 2020, when the nation was in a lockdown during the pandemic.
The ninth straight quarterly decline in home building adds to signs that the economy may post only modest growth in the three months to December even as retail sales increased more than expected and net exports made a positive contribution. Most economists expect gross domestic product increased in the quarter after it slumped 2.1 per cent in the six months to September.
Today’s report showed non-residential construction fell 3.1 per cent in the quarter while total construction volumes dropped 4.4 per cent – the sixth straight decline.
The construction industry has struggled to recover after being impacted in early 2024 by rising costs for both materials and finance. While interest rates are now falling, the recession and rising unemployment have pushed buyers and developers to the sidelines.
The housing market has also been sluggish for the past six months while building consents in the 12 months to January fell 7.2 per cent from a year earlier.
The statistics agency publishes fourth-quarter GDP data on Mar 20. Local economists will not finalise forecasts until more reports on manufacturing production and wholesale trade are published in the coming days. BLOOMBERG
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