New Zealand Residential Construction Rises in Third Quarter
- brg_news_room
- 18 hours ago
- 1 min read
New Zealand: New Zealand’s residential building activity increased in the third quarter, indicating early signs of economic recovery following monetary stimulus by the Reserve Bank of New Zealand. Statistics New Zealand reported that the volume of residential building work rose 2.8 percent from the previous quarter, reversing a 3.3 percent decline. Activity has begun to edge higher from the four-year low recorded at the end of 2024. The increase in construction aligns with improvements in retail sales and exports in the same period, suggesting that gross domestic product may recover after a 0.9 percent contraction in the second quarter. The central bank expects GDP growth of 1.1 percent in the six months to December and 2.9 percent in 2026, while local economists remain cautiously optimistic pending further data, including the third-quarter GDP release due on 18 December.
Construction has been slow to regain momentum after the downturn in 2024, when the economy entered recession and a subdued housing market reduced demand for new homes. Lower borrowing costs are now supporting a gradual improvement, and third-quarter building approvals approached a three-year high.
Source: Business Times
