NZ: Construction activity picked up in September - Westpac

Analysts at Westpac, notes that New Zealand’s construction activity picked up in September, rising by 2.7% and was mainly related to a lift in residential building.

Key Quotes

“There are stark regional differences in construction activity. Building levels in Auckland have picked up. But at the same time, construction in Canterbury is continuing to gradually wind down.”

“There is a large pipeline of planned construction work. However, the combination of stretched capacity, rising costs and tighter credit conditions means that building activity is likely to increase at a gradual pace over the coming year.”

“While we expect continued increases over the coming year, there are questions about just how fast building levels will rise.”