New Zealand's (NZ) construction sector has reported a minor decrease in activity in the June 2024 quarter, with seasonally adjusted building work volumes reaching NZ$8.2bn ($5.06bn), a 0.2% fall from the previous quarter, Statistics NZ (Stats NZ) has revealed.

In the March 2024 quarter, the seasonally adjusted volume of building work was NZ$8.3bn.

Stats NZ construction and property statistics manager Michael Heslop said: “This is the lowest volume of building activity seen in a June quarter since the Covid-impacted June 2020 quarter.”

The seasonally adjusted volume for residential building projects declined by 0.7% to NZ$5.2bn while nonresidential building work experienced a 0.1% drop to $3.0bn.

These adjustments account for typical seasonal patterns and price fluctuations.

Despite these volume adjustments, the actual value of building work completed was NZ$8.8bn for the quarter, not accounting for cost changes or seasonal effects, representing a 2.6% decrease from the same period last year.

Price indices indicate that residential construction prices increased by 1% and nonresidential prices by 0.6% during the quarter. These figures are derived from the capital goods price index.

On an annual basis, there was a negligible 0.1% reduction in the value of building work, totalling NZ$36bn for the year ending June 2024.

Value estimates of building work reflect broader economic trends impacting material and labour expenses in the sector.

Residential building values fell by 4.1% to NZ$23bn whereas nonresidential values saw an increase of 7.8% to NZ$13bn.

Costs have also risen over the past 12 months, with residential construction costs going up by 3.6% and nonresidential costs by 3.7%