Page 17 - Hardware July 2019

stats watch
Statswatch Apr-May 2019
THE APRIL-MAY period is fundamentally positive:
• ImprovementseeninMaydebtandDSOs.
• Non-residentialboostsconsentsandbuildingworkputin
place.
DRAMA IN MAY DSOS
A dramatic improvement that is... The forecast improvements indebtandDSOsfortheMay2019month,courtesyof CreditWorksDataSolutions(www.creditworks.co.nz),have come to pass.
DramaticimprovementforDSOs–CreditWorks’GM,Alan Johnston,says:“TheDSOgraph[oppositetop]showsamuch improvedmonthforcollectionsrightacrosstheboardinMay.
“LastmonthIremarkedthatcollectionlevelsaretraditionally goodthroughoutthewintermonthsandIsuspectedwewould seefurtherimprovementinMay.
“That has certainly appeared to be the case and the DSO levels in all building related sectors improved dramatically over the month.”
Debtlevelsstabilise–Althoughourgraphoppositeshows that May debt on the CRISworks database has crept past the $2 billion mark, CreditWorks says this reflects an increase in customers rather than a spike in debt and will make for greater accuracy over the coming months.
Otherwise, says Alan Johnston, “With debt levels stabilising over the last couple of months, collections generally improve in the building sector at this time and this year is no exception.”
“I expect a levelling off in all these categories throughout June, with shorter days, and more inclement weather, impacting on work activity in the construction area.”
DOUBLE DIGIT GROWTH IN ACTUALS
June’sdataontheactualvalueofbuildingworkputinplace fromStatsNZ(www.stats.govt.nz)fortheMarch2019quarter continue to show good growth.
In the March 2019 quarter, the actual value of total building work was $6.1 billion, +15.7% on the March 2018 quarter, comprising:
• Residential:$3.9billion(+12.2%ontheMarch2018quarter). • Non-residential:$2.2billion(+22.4%).
The value of all building work in the March 2019 quarter by region was as follows:
• Auckland:$2.5billion(+26%ontheMarch2018quarter).
• Waikato:$595million(+30%).
• Wellington:$474million(+1.5%).
• RestofNorthIsland:$950million(+13%).
• Canterbury:$931million(–1.0%).
• RestofSouthIsland:$618million(+12%).
For the year ended March 2019, the national value of all building work put in place was $23.6 billion (+9.4% on YTD March 2018), comprising:
• Residential:$15.2billion(+7.9%onYTDMarch2018).
• Non-residential:$8.4billion(+12.4%).
Both figures were driven by Auckland, with an $861 million
(+16%) rise in residential work and a $923 million (+25%) increase in non-residential.
Interesting to note that the March 2019 quarter and YTD March 2019 numbers represent the first double digit growth in the value of building work put in place since the March 2017 quarter.
NON-RESIDENTIAL DRIVES CONSENTS
Consent data from Stats NZ’s for April 2019 and YTD April 2019 released in May also shows a spike in non-residential work.
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JULY 2019 | NZHJ 15
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