New Zealand construction sector posts first quarterly growth since downturn

New Zealand’s construction industry recorded a 2.7% quarterly increase, becoming the leading engine of growth as overall GDP rose only 0.2% in the same period. This follows an 11.9% drop in the sector during the December 2023 and March 2026 quarters, leaving output still 11.1% lower than at the end of 2023. Seasonal adjustments indicate a 6% gain over the March quarter, yet activity remains 10.6% beneath the December 2023 peak.

The workforce grew to roughly 192,500 in July, a 2.6% rise since the start of the year but 8.4% fewer than in November 2023. Builders report a solid pipeline, especially in Canterbury, driven by first-home buyers and a trend toward smaller, lower-maintenance homes. Analysts attribute the surge partly to ongoing public and private infrastructure projects such as hospitals and schools. Government minister Simon Watts called the quarterly growth “material,” emphasizing the sector’s importance and promising further reductions in regulatory burdens.