Building consents up in Jan

Photo / Martin Sykes.

The seasonally adjusted number of new dwellings authorised, excluding apartments, rose 0.7 per cent in January, says Statistics NZ.

These numbers mean the trend for the number of new dwellings authorised, has now been increasing since March 2009.

During the month consents were authorised for 1,000 new dwellings and 42 new apartment units.

Excluding apartments, the seasonally adjusted number of new dwellings authorised in January was up 0.7 per cent, after falling 3.9 per cent in December 2009.

The trend has been increasing since March 2009, but remains at a low level, and the rate of increase is showing signs of easing in recent months.

Goldman Sachs JBWere economist Philip Borkin said the building consent numbers, seen alongside a "tumble in housing turnover and mixed news on retail spending" it was becoming clear "that the economy shut up shop in December and January."

"Uncertainties surrounding potential tax changes may be featuring. But there also could be an element of the economy taking a longer break after what was a difficult year," said Borkin.

"We expect February gauges to generally bounce back hence making the determination of underlying trends more difficult. Nevertheless, this fits with our view of a modest, but patchy economic recovery."

When apartments are included, the seasonally adjusted number of new dwellings authorised in January 2010 fell 2.8 per cent, after falling 3.5 per cent in December 2009.

The trend has been increasing since the low in January 2009, but remains at a low level. The rate of increase is "showing signs of easing in recent months".

January was a grim month for non-residential construction work, with the value of work consented falling 39 per cent from January the year before, at $223 million. Statistics NZ said this was the lowest value since April 2006.

Ten of the 11 building types recorded decreases in the value of consents compared with January 2009.

The biggest falls were offices and administration buildings, down $68 million; shops, restaurants, and taverns, down $28 million.

In January 2010, social, cultural, and religious buildings were the only building types to show an increase, up $10 million from the same month last year.