The volume of building work in New Zealand grew robustly in the second quarter, with widespread strength seen throughout residential and non-residential elements. Given the huge construction sector pipeline, the positive trend is expected to continue, noted ANZ in a research report.
The volume of total building work grew 5.5 percent in sequential terms in the second quarter, after rising 5.7 percent in the first quarter. On a year-on-year basis, volumes grew 16 percent. The rise was broad based with similar-sized growth witnessed in residential and non-residential work.
Residential volumes were up 5.6 percent quarter-on-quarter. According to Statistics New Zealand, the trend level is almost double its low point in September 2011. Volumes of non-residential construction grew 5.3 percent in the second quarter, after rising 5.6 percent in the previous quarter.
In nominal terms, Auckland was leading. The value of building work in the region grew sharply by 13 percent, following a rise of 12 percent in the first quarter. Strong construction cost inflation is expected to be adding to this growth. Most other regions also registered solid growth, except Wellington, where the value of building work dropped 10 percent.
