Our take on the latest Building work put in place (Fri 4 Sept 2020)
Total construction activity fell 27%pa
Residential construction fell 25%pa
Non-residential construction fell 31%pa
The key numbers...
- Total building work put in place in June fell 22% from March (seasonally adjusted), leaving construction activity 27%pa lower than a year ago.
- Construction activity in the non-residential sector fell 31%pa, which was a sharper drop than residential building’s fall of 25%pa.
- The value of non-residential building activity fell most sharply in Canterbury and Auckland, down 38% and 31%pa respectively. Retail, farm, and office building were the hardest hit building types, with the value of construction down 41%, 35%, and 31%pa respectively.
- The contraction in residential building activity was felt relatively evenly across the country, with the value of residential construction contracting by 20-24%pa across all regions.
Work put in place
Annual % changes, Sept 1999 prices
...and our reaction
- Building activity through the June quarter was incredibly limited, due to the Level 4 lockdown throughout April. StatsNZ commented that construction work, in many cases, was delayed for longer than lockdown was in place, with activity on some projects delayed for up to two months.
- Although the result for June is incredibly poor, and highlights the impact of lockdown on economic activity, the result still sits above what we had expected for the quarter – reflecting that while things were bad, they could have been worse!
- We expect a significant bounce back in the September quarter as building activity gets back underway. However, the Level 3 lockdown in Auckland is likely to limit the extent of the region’s bounce in the current quarter.
Latest updates
Premium
Building work put in place
Construction activity at a 10-year low
Thu 4 Jun 2026
Quarterly
13% Non-residential activity in March 2026 from March 2025
3.9% Residential activity from March 2025
Total building activity at its lowest level (excl lockdowns) since 2015Premium
Building work put in place
Non-residential work hammered as residential softens further
Thu 5 Mar 2026
Quarterly
6.5% Non-residential activity from September 2025 (sa)1.1% Residential activity from September 2025 (sa)Total building activity at its lowest level (excl lockdowns) since 2015Building work put in place
Non-residential activity continues to decline
Thu 4 Dec 2025
Quarterly
Residential volumes up 3.3% in September from June 2025 (sa)Non-residential volumes down 1.3% in September from June 2025 (sa)Total quarterly activity now down 5.3% from September 2024Building work put in place
Lower residential activity leads construction decline
Thu 4 Sept 2025
Quarterly
Residential volumes down 2.9% in June from March 2025 (sa)Non-residential volumes down 0.4% in June from March 2025 (sa)Total quarterly activity now down 9.6% from June 2024