Westpac anticipates building sector lift
Westpac economists are tipping a lift for the moribund construction industry next year.
“We anticipate rapid growth in residential construction for Christchurch and Auckland leading to 30% growth in residential construction during 2012 compared with 2011, and a great deal of infrastructure work in Christchurch.
“However, we expect commercial construction to ramp up only gradually in Christchurch, and to remain weak elsewhere.”
Westpac said some growth in construction has already taken place or is imminent and the bank we anticipates 7% growth in construction activity in the final quarter of 2011.
“The outlook for the construction sector is not just about Christchurch. There is also the issue of an emerging housing shortage, due to the prolonged period of low house building.
“Recent evidence suggests that the shortage is most acute in Auckland, and that construction activity there is about to ramp up in response.”
Seasonally adjusted building consents (ex-apartments) in Auckland have increased almost 50% since mid-year, the report said.
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Comments and questions9
When do I return to a five day week?
"We anticipate rapid growth in residential construction for Christchurch and Auckland leading to 30% growth in residential construction during 2012 compared with 2011, and a great deal of infrastructure work in Christchurch"
“However, we expect commercial construction to ramp up only gradually in Christchurch, and to remain weak elsewhere.”
No doubt about it, these economists are really smart cookies.
Yep, what with the Eurozone pulling everyone into a depression everything is bound to be just hunky dory in 2012.
Clueless!
How "clueless" Anon...the rebuild doesnt depend on europe or anything else other than insurance and consents..its starting to happen now, I see it every day ..its slow but its also clearly starting to step up
Yes its right to skeptical about what might happen to the general economy if europe blows up, but they're only talking about the construction industry and that is the one area negativity will disappear from over the next 12 months.
with you Richard P, obviously these negative trolls would rather complain about the worst case scaenrio rather than embrace the possibility there may be jobs in the offering. Or maybe they are just labour voters who don't want good news, better to be a dependent of the state.
Retired banker or sacked banker? I suspect the latter judging by your inability to see what is coming.....
This makes me laugh coming from Westpac as we are in the building industry and they have not helped us at all and in fact made us pay back our business loans which we did with no help from them so now in the process of changing banks as we learnt if you ask for help from Westpac then all they do is screw you ( Unless u owe them $10 million upwards I suppose then they are to scared to do anything )
I hope the prediction of an upturn in residential construction is correct, however, where are the tradesmen going tocome from as apprentice numbers have dropped off dramatically and many good trademen have left the industry.
I absolutely agree with bricklayers comments. I also predict that apprentices (which are the back bone of our trade society) will fall too the demential decay of New Zealand society in general population functioning
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