Building and construction sector “steady"

FOR IMMEDIATE RELEASE

March 9 2007

Building and construction sector “steady as she goes”

The latest residential building figures reflect a “steady as she goes” building and construction sector, says Registered Master Builders Federation Chief Executive Pieter Burghout.

Statistics New Zealand figures released today showing the value of residential building work rose 3.1% in the December 2006 quarter, with commercial construction up 3.5%.

Over the whole of 2006, all building work was up 3.1% on the previous year, but once adjusted for inflation it was more or less the same, Mr Burghout says.

“In dollar terms, the last quarter for 2006 was a strong one and we think it will be largely more of the same during 2007.”

Mr Burghout says the Reserve Bank’s action in raising interest rates yesterday may lead to lower levels of residential building, but ongoing strong levels of commercial building work should mean that “the building and construction sector should stay relatively buoyant”.

“This continues to bode well for skills and capability investment in the sector, especially given the introduction of voluntary builder licensing later this year and compulsory licensing in 2009.”

ENDS

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