Building activity decreases

The volume of both residential and non-residential building activity decreased in the September 2010 quarter, after the removal of seasonal effects, Statistics New Zealand said today. Residential building activity volumes fell by 5.3 percent, following an increase of 20 percent over the previous three quarters. Non-residential building activity volumes fell slightly (0.7 percent), following increases in the previous two quarters.

Looking at the longer term trend, the volume of residential building activity has increased for the last year, but the rate of increase is showing signs of easing in the latest quarter.

"Looking also at the latest building consents release, the trend for the number of homes consented increased for just over a year before peaking in April this year. It has declined since then", business statistics manager, Louise Holmes-Oliver said. "While these figures only describe the intention to build, there is a definite relationship between consents and building activity."

The trend for the volume of non-residential building activity has increased for the last three quarters following a year of decreases. The current level is 8.8 percent lower than the recent peak in the December 2008 quarter.

In the September 2010 year compared with the September 2009 year, the unadjusted value of:

• all building activity was $10,912 million, down 1.5 percent
• residential building activity was $6,307 million, up 6.2 percent
• non-residential building activity was $4,605 million, down 10.5 percent.

Commercial buildings were the largest contributor to the fall in non-residential building activity in the September 2010 year. 

Data on building activity is obtained each quarter primarily by a postal survey of around 3,500 builders, owners, and other building consent applicants. 

Highlights

• The seasonally adjusted volume of:
• all building work fell 3.2 percent, following three consecutive quarterly increases 
• residential building work fell 5.3 percent, following three consecutive quarterly increases 
• non-residential building work fell 0.7 percent, following two consecutive quarterly increases.

As shown below, the trend for the volume of all building work increased in the last three quarters, but is still 19.4 percent lower than the most recent peak in the December 2007 quarter.