The ‘Cantometer’ index rose to a fresh high of 1.9 in September, compared to the previous high of 1.8 in August, reflecting the role of increased building construction as a key economic driver in the region.
“Construction activity continues to stand out with continued gains across both residential and non-residential construction,” says ASB chief economist Nick Tuffley.
“An increase in major construction projects is a good sign as businesses begin to feel more confident about committing to large-scale projects.
“Positive construction activity is flowing through to firm demand in other areas as employment opportunities continue to pull new workers to the region. Households are feeling more confident about making major purchases, and this is reflected in increased car sales,” says Tuffley.
“Construction growth should continue to remain a key driver of Canterbury economic activity over the next couple of years.
“The earthquake rebuild will likely continue to underpin further strengthening in the Canterbury labour market as more workers flock to the region. The consequent lift in incomes should continue to underpin healthy discretionary household spending, particularly in big-ticket items.”
