Decline in building work surprises

Westpac had expected an increase of 2%.

Its economists said the difference compared to expectations was because of residential work. While it was up 1.1%, it was short of the expectation of a 7% increase that had been based on the increase in building consents over recent months.

But work does seem to be happening where it's needed: House construction in Canterbury was up 6% by value.

Construction is also picking up in Auckland.