Construction and retailers curbed by Covid

The construction and retail trade industries had the largest sales falls in the September 2021 quarter, Stats NZ said today.

Most industries in the business financial data release had sales falls over the September 2021 quarter, these were largely impacted by lockdown measures over August and September.

Construction

After adjusting for seasonal effects, the construction industry had a $1.8 billion sales fall, down (8.9 percent) from the June 2021 quarter.

"The construction industry, which has seen increasing demand this year, had its first sales decrease since December 2020," business statistics manager Evie Rolinson-Purchase said.

"The decrease in the September quarter results from lockdown measures coming into place in August, and was most keenly seen in the Auckland region."

The seasonally adjusted value of work put in place in Auckland fell 11 percent in the September 2021 quarter. The Auckland region typically accounts for more than one-third of construction activity in New Zealand. While the rest of the New Zealand regions saw rises or less significant dips over the same period.

Building activity down in September quarter has more detailed building activity information.

Manufacturing

The manufacturing industry had a $674 million (2.2 percent) sales fall in the September 2021 quarter compared with the June 2021 quarter.

"Despite sales falls in several construction related manufacturing industries, increased prices for meat and dairy cushioned the blow for total manufacturing values," Ms Rolinson-Purchase said.

Metal product manufacturing had the largest fall, down $412 million (13 percent) over the quarter. Non-metallic mineral manufacturing, which includes the production of concrete, glass, and other building-base materials, was down $182 million (17 percent) in the same period.

Retail trade

The retail trade industry experienced the largest quarterly sales fall in the September 2021 quarter. It fell by $2.0 billion (7.0 percent) following a decent rise of $1.1 billion (4.2 percent) in the June 2021 quarter.

"Retail trade reported falls in all but a few sub-industries. The supermarket and grocery sub-industry saw an upturn in sales, with consumers in the Auckland region impacted by COVID restrictions during the quarter," Ms Rolinson-Purchase said.

Retail trade survey: September 2021 quarter has more detailed retail trade information.

Wholesaling

The wholesale trade industry had the largest industry sales increase, up $546 million (1.8 percent) to $31.6 billion for the September 2021 quarter. The March and June 2021 quarters experienced strong rises off the back of rising prices for several key wholesale commodities over the year.

Grocery, liquor, and tobacco wholesaling

Grocery, liquor, and tobacco product sales had the largest wholesaling sub-industry increase, up $560 million (6.1 percent) in the September 2021 quarter.

"August lockdown has boosted sales for grocery wholesalers, which are suppliers for supermarkets, butchers, and other food stores," Ms Rolinson-Purchase said.

"The sales were also affected by the rising cost of food. The food price index saw the highest quarterly increase since September 2008, following other rises seen for most of the year."

Motor vehicle and parts wholesaling

Motor vehicles and parts wholesaling had the largest sub-industry fall, down $141 million (4.1 percent) in the September 2021 quarter. This was mirroring the movement seen in the retail trade of motor cars and parts, which fell sharply over the quarter.

"Wholesaling of most motor-vehicle businesses was subdued over the quarter. However, some increases were seen in the sales for electric-vehicle wholesalers after the tax rebate changes on new and used imported electric vehicles came into effect at the beginning of July," Ms Rolinson-Purchase said.