Early signs the predicted downturn in building activity is already starting to bite

The building industry is probably already in the early stages of a downturn, according to the latest figures from Statistics NZ. Building consent figures have been suggesting a pending downturn in construction activity for several months, but that is a forward looking indicator of future activity levels. However Statistics NZ's latest survey of building activity suggests the downturn could already be starting to bite into current work levels. Building work commencements usually decline between the fourth quarter of one year and the first quarter of the next, but the latest decline of 4.8% was significantly greater than previous years. In the first quarter of last year the value of building work commenced was down 3.3% from the previous quarter, and in the first quarter of 2021 the value of building work was down just 2.0% from the previous quarter.