Building Work Put in Place showed a slightly softer than expected increase in building construction activity in QIII, with thedownside surprise driven by a decline in non-residential construction. Residential construction rebounded 8.1%, following thesurprise decline in the previous quarter. Encouragingly, the increase was driven by an increase in residential construction inAuckland and Canterbury. Dwelling monthly consents indicated these two regions would be the key drivers of residentialconstruction growth over QIII. However, recent dwelling consents data suggest a slowing in house-building activity inAuckland over QIV. Given the acute housing shortages in the region we would hope this slowing will prove temporary andthat Auckland residential construction growth will resume over 2014.
Read the full report: Economic Research
Commonwealth Bank