WELLINGTON, Dec 8 (Reuters) - The value of New Zealand residential building work fell to its lowest level in six years in the third quarter, backing views the recession probably deepened during that period.
The seasonally and inflation-adjusted value of residential work fell 7.9 percent during the three months to September, the fourth straight quarter of decline and compared with an upwardly revised 7.7 percent drop in the second quarter, according to official data on Monday.
It was the biggest quarterly fall since June 2006.
The value of non-residential building work such as offices and factories, rose 5.8 percent, the first gain in three quarters.
The value of all building work during the quarter fell 2.1 percent, compared with a 5.5 percent fall in the June quarter.
The unadjusted value of all building work was NZ$13.2 billion ($7 billion) during the year to the September quarter, up 0.1 percent on a year earlier, of which residential work accounted for 60.6 percent.
The once-robust housing market has cooled sharply as tight credit conditions and soaring food and energy costs hit consumer spending.
The economy has been in recession since the beginning of the year, the first in over 10 years, and gross domestic product is seen to have fallen around 0.4 percent in the third quarter.
The Reserve Bank of New Zealand cut interest rates by a record 150 basis points to 5 percent last week, the fourth reduction since July, when the official cash rate was at a record 8.25 percent.
Retail lenders have cut their fixed and floating mortgage rates in response to the central bank's rate cuts.
($1=NZ$1.88) Keywords: NEWZEALAND ECONOMY/BUILDING (Wellington newsroom tel +64 4 471-4234, fax +64 4 473-6212, wellington.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The seasonally and inflation-adjusted value of residential work fell 7.9 percent during the three months to September, the fourth straight quarter of decline and compared with an upwardly revised 7.7 percent drop in the second quarter, according to official data on Monday.
It was the biggest quarterly fall since June 2006.
The value of non-residential building work such as offices and factories, rose 5.8 percent, the first gain in three quarters.
The value of all building work during the quarter fell 2.1 percent, compared with a 5.5 percent fall in the June quarter.
The unadjusted value of all building work was NZ$13.2 billion ($7 billion) during the year to the September quarter, up 0.1 percent on a year earlier, of which residential work accounted for 60.6 percent.
The once-robust housing market has cooled sharply as tight credit conditions and soaring food and energy costs hit consumer spending.
The economy has been in recession since the beginning of the year, the first in over 10 years, and gross domestic product is seen to have fallen around 0.4 percent in the third quarter.
The Reserve Bank of New Zealand cut interest rates by a record 150 basis points to 5 percent last week, the fourth reduction since July, when the official cash rate was at a record 8.25 percent.
Retail lenders have cut their fixed and floating mortgage rates in response to the central bank's rate cuts.
($1=NZ$1.88) Keywords: NEWZEALAND ECONOMY/BUILDING (Wellington newsroom tel +64 4 471-4234, fax +64 4 473-6212, wellington.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.