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                                            stats watch
                                                       Statswatch Sep-Dec 2019
NOVEMBER-DECEMBER WAS a patchy period for building-related data.
• Nov-DecprefacesharderJanuaryfordebtandDSOs.
• PositivesinSeptquarter’svalueofbuildingworkputinplace. • HighsandlowsinNovemberconsents.
JANUARY AHEAD – VIGILANCE RECOMMENDED
The stats for November-December from CreditWorks Data Solutions (www.creditworks.co.nz) usually indicate a tight January ahead and it looks like this year will be no different.
CreditWorks’ Alan Johnston reports that November’s DSOs remained steady across the board, as expected, while debt levels on the CRISworks database overall increased considerably, due mainly to several new data contributors coming on board in recent months.
On the ageing front, November brought with it a slight improvement in the 30/60/90 day areas – which is a good sign – the only deterioration being in the troublesome 120 day area.
In terms of December’s state of affairs, overall debt on the CRISworks database decreased significantly, as much of the contributing data providers have been absent during January.
Nevertheless, debt remains higher than in previous years.
As expected, debt collection improved across nearly all sectors in December, with the Glass sector showing the largest improvement on a percentage basis. Overall, the Concrete sector is the best performer in the DSO area.
The building industry as a whole however bucked this trend from an improvement perspective in December, with debt ageing increasing by around 3 days on average, to 48 days.
Looking further out, CreditWorks forecasts that, as usual, January will be a tough month for collecting debt and therefore cashflow, and reminds us that we are also entering the time of year when most liquidations occur, due to cash restraints.
WHAT PRICE ACTUAL BUILDING WORK?
Despite a fall in the quantity of Ready Mixed Concrete (–3.3% ontheJunequarter)andthenumberofpaidhoursinthe constructionindustry(–2.1%),thenumbersonthevalueof buildingworkputinplacefortheSeptember2019quarterfrom Stats NZ (www.stats.govt.nz) show good ongoing growth, with a slight residential softening compared to the June quarter being balanced out by non-residential gains.
In the September 2019 quarter, the total actual value of building work was as follows:
• Residential: $4.1 billion (+8% on the Sept 2018 quarter). • Non-residential: $2.4 billion (+18.2%).
• Total: $6.5 billion (+11.6%).
By region, growth in the actual value of all building work put in place in the September 2019 quarter was led by the Waikato ($604 million, +18% on the Sept 2018 quarter), followed by Auckland ($2.7 billion, +15%), Wellington ($532 million, +15%), the Rest of South Island ($671 million, +10%), the Rest of North Island ($1.0 billion, +9.7%) and Canterbury ($947 million, +1.0%).
In the year ended September 2019, the value of building work put in place was as follows:
• Residential: $15.9 billion (+9.3% on the Sept 2018 year).
• Non-residential: $9.1 billion (+16.4%).
• Total: $24.9 billion (+11.8%).
Nationally, the non-residential building types showing the most growth in the September 2019 year compared with the September 2018 year were as follows:
• Shops, restaurants & bars: +45%.
• Storage: +34%.
• Hotels, motels, boarding houses & prisons: +35%.
HIGHS AND LOWS IN NOV CONSENTS
Turning now to building consents and the promise of work
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