NZ 's non-residential construction to remain elevated for some time

June's increase in NZ's building activity was underpinned by a 5% increase in non-residential construction work. Over the past year non-residential construction activity has increased by a solid 12%. Much of this gain has related to reconstruction and new investment in Canterbury, which is expected to continue increasing at a gradual pace over the coming months. 

"There have also been increases in Wellington, likely related to earthquake strengthening and in Auckland. Non-residential investment spending is expected to remain elevated for some time. There is a strong pipeline of work including commercial projects in both Canterbury and Auckland, as well as infrastructure spending nationwide", says Westpac.

In residential construction, there was a modest 1% pull back over the June quarter. Contributing to this was a pullback in residential construction in Canterbury.