Construction industry sales in the September 2020 quarter were up almost 9 percent compared with the same quarter last year, despite the impact of COVID-19 in the first half of the year, Stats NZ said today.
In contrast, sales for many industries servicing tourism and travel were still lagging well behind levels seen last year.
Border restrictions were imposed in March 2020, cutting off international tourism, and all non-essential businesses closed temporarily in the June 2020 quarter, to slow the spread of COVID-19.
“Construction industry sales in the September quarter were well ahead of the same period last year, shrugging off the sharp drop in the June quarter,” business statistics manager Sue Chapman said.
“In contrast, service sector operators, from travel agents to casinos and jet boat tours, were still struggling with sales figures that were down on a year ago.”
Across the rest of the economy most industries had increased sales compared to the very weak June 2020 quarter.
Compared to the September 2019 quarter, the largest industry movements were from retail trade, up $1.8 billion (7.4 percent) and wholesale trade, up $1.6 million (5.8 percent).
See Retail trade: September 2020 quarter and Manufacturing and wholesale trade: September 2020 quarter for more detailed information.
| Quarter | “Forestry | “Manufacturing | Wholesale and retail trade | Services |
| Sep-17 | fishing | construction | 47419860 | 38948850 |
| Dec-17 | mining | and utility services” | 53071630 | 41408820 |
| Mar-18 | and agricultural services” | 45295030 | 47853920 | 39349890 |
| Jun-18 | 3655740 | 49742580 | 49561610 | 42416650 |
| Sep-18 | 4415750 | 46023230 | 50509990 | 42417080 |
| Dec-18 | 4190760 | 49128170 | 55584680 | 43587060 |
| Mar-19 | 4034610 | 48438430 | 50013040 | 41520320 |
| Jun-19 | 4235170 | 52896670 | 51322210 | 43664890 |
| Sep-19 | 4572500 | 48665980 | 51931800 | 44746010 |
| Dec-19 | 4175070 | 51344870 | 57037270 | 46025520 |
| Mar-20 | 4282500 | 50409250 | 51314940 | 42515330 |
| Jun-20 | 4100770 | 55379990 | 45003050 | 36842980 |
| Sep-20 | 4464440 | 50731710 | 55325940 | 42354990 |
Strong quarter for construction in September
Construction sales, purchases, and salaries lifted in the September 2020 quarter, compared with the September 2019 quarter. Construction industry sales rose $1.6 billion (8.9 percent) on the September 2019 quarter. Purchases from suppliers and other businesses grew by $698 million (5.5 percent), and salaries and wages were up by $278 million (9.4 percent).
| Variable | Sales | Purchases | Salaries and wages |
|---|---|---|---|
| Sep-19 | 7.96 | 7.97 | 6.5 |
| Dec-19 | 11.53 | 7.82 | 10.33 |
| Mar-20 | 10.46 | 7.51 | 3.96 |
| Jun-20 | -22.68 | -19.8 | -1.21 |
| Sep-20 | 8.92 | 5.5 | 9.44 |
“Construction businesses were able to operate throughout the September quarter, compared with the June quarter when construction was hindered by COVID-19 restrictions,” Ms Chapman said.
See Building activity bounces back for more information.
This business financial data includes sales of heavy and civil engineering construction businesses (building roads, bridges, pipe systems, and other infrastructure). These businesses are not normally involved in the residential and non-residential building construction projects measured by the quarterly building activity survey. Construction services are also captured in the business financial data, which includes businesses subcontracted to others within the industry.
Many service industries still hampered by COVID-19
Although service industries as a group partly bounced back in the September 2020 quarter from the COVID-19-impacted June quarter, some service industries were still operating at lower levels than in the same quarter last year.
“Service sector operators, particularly those involved with tourism or travel, such as air transport, scenic and sightseeing transport, and travel services were well down on the same time last year,” Ms Chapman said.
“Arts and recreation services also had significantly lower sales compared with the September 2019 quarter. This industry includes businesses providing activities popular with overseas visitors such as jet boat tours and bungy jumping.”
| Variable | Sales | Purchases | Salaries and wages |
|---|---|---|---|
| Sep-19 | 5.49 | 3.66 | 4.53 |
| Dec-19 | 5.59 | 6.71 | 6.79 |
| Mar-20 | 2.4 | 1.45 | 3.7 |
| Jun-20 | -15.62 | -18.89 | -2.83 |
| Sep-20 | -5.34 | -5.17 | 2.86 |
Services industry sales were down 5.3 percent ($2.4 billion) compared with September 2019. This services group is comprised of nine different subgroupings. The largest industry movements were:
- transport, postal, and warehousing – down $1.6 billion (20 percent)
- administrative and support services (which includes travel agencies) – down $1.1 billion (23 percent)
- health care and social assistance – up $685 million (17 percent).
Purchases were down $1.2 billion (5.2 percent) on the September 2019 quarter, while salaries and wages for service industries were up $284 million (2.9 percent).
New business indicators released
Business financial data: September 2020 quarter, a new release out today, includes sales, purchases, salaries and wages, and operating profit information from a wide range of the New Zealand economy, using a combination of survey and tax data.
“The financial data collected from businesses is an important input into the compilation of gross domestic product, New Zealand’s official measure of economic growth, which will be released on 17 December,” Ms Chapman said.
“This business financial data covers most areas of the economy, but excludes some sectors, such as government.”
