Westpac anticipates building sector lift
Westpac says things will start to take off next year.
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.
Chris Hutching
Wed, 14 Dec 2011
Wed, 14 Dec 2011
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Westpac anticipates building sector lift
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