WELLINGTON: Building authorizations in New Zealand declined in July, partially offsetting the previous month’s surge. The number of new residential building permits fell at a seasonally adjusted 10.5% rate in July following an upwardly revised 22% spike in June, Statistics New Zealand said in a report on Tuesday. Compared to a year ago, consents rose by 13%.
Building consents, which are issued by the New Zealand government, are a key proxy for housing demand and construction spending, two pillars of the national economy. A total of 2,811 new dwellings were authorized for construction in July, including 1,761 houses, 432 townhouses, 421 apartments and 189 retirement village units. Consents have experienced sharp fluctuations this year, especially in the more volatile apartment segment. Auckland has been at the centre of the downdraft, although industry insiders believe the market will soon rebound.
The New Zealand dollar declined sharply Monday, falling to two-week lows against its US counterpart, which is benefiting from renewed rate-hike chatter. The NZD/USD exchange rate plunged 1% Monday to reach 0.7226. It would later close at 0.7249. As of Tuesday morning, the pair was little changed at 0.7249. In terms of upcoming releases, the National Bank of New Zealand will release its latest business outlook on Wednesday. The report provides a snapshot of the New Zealand economy through the eyes of various business leaders. On Thursday Statistics New Zealand will release the quarterly terms of trade index, a measure of balance between imports and exports.
