8 Sep 2011

Building activity well down

12:08 pm on 8 September 2011

Building activity is at its lowest level in a decade, led by residential housing.

Figures from Statistics New Zealand show the amount of building work fell 6.6% in the three months to June, after adjusting for price and seasonal effects.

Housing activity fell 12% in the quarter and has dropped 24% in the last year to the lowest level in 18 years. New house consents hit a record low earlier this year.

Goldman Sachs economist Philip Borkin says the sector has been depressed for some time.

On an annual basis, all building work fell 1% to $10.6 billion.