Canterbury rebounding faster
Canterbury's hiring and building intentions are leading other regions.
Canterbury is rebounding after the earthquakes, according to UBS economist Robin Clements.
Seasonally adjusted domestic trading rebounded in Canterbury by 10% compared with a 2% decline in the second quarter of this year, according to the September 2011 Quarter NZIER QSBO report.
By contrast, the rest of the country eased slightly (0% from +4%). Building investment intentions are high in Canterbury (+23% from +17%), while the rest of New Zealand eased (-11% from -7%).
Plant investment intentions were high in Canterbury (+17% from +22%) and compared with the rest of New Zealand at +4% down from +8%.
Canterbury profitability surged (-6% from -34%), while the rest of New Zealand improved only moderately (-16% from -20%). Hiring intentions remain elevated in Canterbury (unchanged at +20%), led by record highs among builders. Actual and anticipated hiring in rest of the country eased, Mr Clements said.
Manufacturers remain optimistic despite softening output as domestic sales contracted and export sales eased. Profitability improved slightly as costs fell more than prices.
Construction activity eased (0% from +8%) but confidence remains high (+25% from +30%). The Canterbury rebuild is the key driver, which is supporting new orders (+1% from -7%) and hiring (+4% from -5%).
Chris Hutching
Tue, 04 Oct 2011
Tue, 04 Oct 2011
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Canterbury rebounding faster
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