8 Jun 2011

Commercial building activity declines

2:10 pm on 8 June 2011

Commercial building activity slumped in the first three months of this year, reflecting underlying weakness in the construction industry.

Statistics New Zealand says commercial building work fell by 10.4% and residential by 2%.

Overall, building activity declined a seasonally adjusted 6.3% in the March quarter.

These latest figures follow a 1.6% fall in building consents for April.

ASB economist Chris Tennant-Brown says while building activity dropped significantly in Christchurch, the underlying weakness remains.

On an annual basis, building work rose 4.5% percent in the year to the end of March.