Council heralds construction lift
Tuesday 22 January 2013
Auckland’s council says signs of increasing activity in the city’s construction sector indicate more sustained economic growth ahead for the region.
Auckland Council’s chief economist Geoff Cooper said construction activity had been flat since the end of 2008.
But the number of residential consents rose 5% in the three months ended September 30, 2012, from the previous quarter and were up 27% on 2011.
Economic activity in the construction sector rose 3.6 per cent in the same period.
Cooper said residential consents were an important lead indicator of economic activity.
“After a long period of sluggish activity, the construction sector is showing signs of awakening and that’s likely to lead to stronger growth for Auckland’s economy as we progress through 2013.”
He said for every dollar spent in the construction sector, $1.60 was generated for other parts of the economy.
Comments from our readers
No comments yet
Sign In / Register to add your comment
Decline in investor activity has had a limited impact on the booming housing market – yet in Auckland prices are at a record high, new REINZ data shows.
Restrictions and pressure on residential property investors keeps growing and many investors are looking for possible solutions: commercial property is one such option.
Keeping the OCR on hold was the move expected of the Reserve Bank today, but economists say it means there will be another cut in November.