Canterbury economic activity still robust

While a moderation in residential and commercial construction activity is occurring, significant Government anchor projects remain in the pipeline. A recovery from local drought conditions and the re-opening of transport routes should also be supportive. Our assessment is that, overall, Canterbury economic activity is still robust.

To some extent, the current data supports the conclusion that activity growth is moderating in Canterbury. For instance, the ANZ General Business sentiment index for Canterbury has fallen slightly to a net 0, compared to a peak level of over 60 in 2013-2014 and long term average of +14. Nationally, the same survey is showing a slowing in business sentiment. However, it is difficult in sentiment surveys to disentangle broader effects from factors that might be influencing Canterbury.

Business sentiment in Canterbury has fallen slightly