Non-residential building work hits six-year low

The seasonally adjusted volume of non-residential building activity fell for a fifth consecutive quarter in the three months to March, dropping to its lowest level in six years, Statistics New Zealand says.

The non-residential adjusted volume fell 0.8 per cent in the March quarter, and was 13.6 per cent lower than in the December 2008 quarter. In contrast, the seasonally adjusted volume of residential building work rose 2 per cent, adding to a rise of 7.2 per cent in the December quarter.

The volume of residential building work in the March quarter was 9.4 per cent higher than during the recent low in the September 2009 quarter, and was similar to levels seen in the March 2009 quarter.

For all buildings, the seasonally adjusted volume was up 0.7 per cent in the March quarter, following a 1.2 per cent rise in the December quarter.

SNZ figures show the unadjusted value of residential buildings put in place in the March quarter was $1.4 billion, 2.3 per cent lower than a year earlier, while the non-residential total fell 15 per cent to $1.1 billion, and the total value fell 8.2 per cent to $2.5 billion.

The seasonally adjusted value of residential building work, in current prices, rose 2.2 per cent in the March quarter, while the non-residential value fell 1.2 per cent, its fifth consecutive quarterly fall.

For the March year, the unadjusted value of all building activity was $10.6 billion, down 12.6 per cent from the previous year. Non-residential building work fell 9.9 per cent to $4.8 billion, while residential building activity fell 14.7 per cent to $5.8 billion.

- NZPA