Out of the 14 industries that Stats NZ measures financial data for, construction and manufacturing had the largest decreases in sales in the June 2025 quarter.
Construction sales were down $720 million compared with the first three months of 2025.
“Construction sales fell 3.1% in the June 2025 quarter, following a 0.7% rise in the March 2025 quarter,” economic indicators spokesperson Michelle Feyen said.
“Building activity is also estimated by the value of building work put in place. Both measures are telling a similar story, with decreases in most quarters over the last two years.”
Construction sales were $22.3 billion in the June 2025 quarter. The value of building work was $7.9 billion or 35% of construction sales.
“In the June 2025 quarter, construction sales were 11% lower than in the June 2023 quarter,” Feyen said. “The value of building work put in place decreased 14% over the same period.”
When adjusted for price changes and inflation, building activity volumes decreased 18% over the two years to the June 2025 quarter.
Overall manufacturing sales decreased by 3% in the quarter, to $33.4 billion.
Many of the materials used in construction are produced by three manufacturing industry groups: non-metallic mineral products, metal products, and wood and paper products. Sales were down for all three.
Sales in non-metallic mineral product manufacturing fell by 4.9%, covering goods such as glass, brick, cement, plaster, and concrete. This group has the closest relationship with New Zealand construction sales.
Metal product manufacturing experienced a 5.1% decline, impacting items such as steel and aluminium frames, reinforcing, structures, and roofing.
Meanwhile, wood and paper product manufacturing declined by 3.2%, including plywood, timber, wooden joinery, frames, trusses, and other structural components.
These latest figures indicate a prolonged slowdown in New Zealand’s construction sector, with activity volumes down 18% over the past two years, and related manufacturing industries also experiencing weakening.
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