Building drives up index

Capital goods prices rose in the first quarter, driven by strength in residential construction, Statistics New Zealand data shows.

It said the capital goods price index rose 0.7 per cent in the December 2005 quarter, driven by a 1.6 per cent increase in the residential buildings index.

The residential buildings index rose due to higher construction component costs and increased labour costs. The plant, machinery and equipment index was the only index to record a fall, dropping 0.2 per cent.