Building activity has plummeted to its lowest level in 10 years, dragged down by a drop in residential building, latest figures show.
This comes just seven months after the number of building consents sank to a nine-year low, on a fall in the construction of new homes.
Statistics New Zealand figures show the amount of all building work fell 6.6 per cent in the June 2011 quarter, led by a decrease of 12 per cent in residential building activity.
"A decline of this extent is surprising," said Jane Turner, economist at ASB.
"Construction activity was already very weak, and we had expected construction activity to remain broadly stable given building consents had started to stabilise over the first half of 2011."