KEY POINTS:
The Capital Goods Price Index (CGPI) rose 0.7 per cent in the December quarter, the 15th consecutive quarterly rise, Statistics New Zealand (SNZ) said today.
Higher costs of both residential and non-residential construction were the main contributors to the increase.
The residential buildings index, which was up 1 per cent in the quarter, was the most significant upward contributor to the CGPI.
The increase was mainly due to the construction of new houses and was driven by the high costs of components and fittings, and increased subcontractor charges.
The non-residential buildings index, also up 1 per cent, was the second most significant contribution to the CGPI increase. Higher construction costs of farm buildings, due to the cost of components and labour, and adjustments to profit margins, were main factors in the increase.
For the year to the December quarter, the CGPI was up 4.1 per cent, with the residential buildings index up 5.1 per cent and the non-residential index up 6.7 per cent.
- NZPA
