Construction and manufacturing slumped in June quarter, new Stats NZ data show

Construction activity declined in the second quarter. Pictured is construction at the City Rail Link southern portal at the Maungawhau Station site.

The construction and manufacturing sectors took a big hit in the second quarter as the economic recovery started to stall, new Stats NZ data show.

The industries had the largest decreases in sales in the June 2025 quarter out of the 14 industries measured by business financial data released by Stats NZ today.

Compared with the March 2025 quarter, manufacturing sales were down by $1 billion and construction sales were down by $720 million.

Business financial data provide estimates of operating income (sales) and expenditure for most market industries in New Zealand.

Unless specified, all sales data are adjusted to account for seasonal effects, but do not compensate for inflation and price effects.

“Construction sales fell 3.1% in the June 2025 quarter, following a 0.7% rise in the March 2025 quarter,” economic indicators spokeswoman Michelle Feyen said.

“Building activity is also estimated by the value of building work put in place. Both measures are telling a similar story, with decreases in most quarters over the last two years.”

Manufacturing volumes are calculated by removing the effect of price changes from sales values.

In the June 2025 quarter, when adjusted for seasonal effects against the previous quarter, the largest sales movements were in electricity, gas, water and waste services (up $1.1b).

For all business financial data (BFD) industries, in the June 2025 quarter compared with the June 2024 quarter, sales were $196b, up $4.1b (2.1%).

Purchases were $136b, up $2.5b (1.9%) and salaries and wages were $32b, up $373m (1.2%).

Operating profit was $28b, up $1.1b (4.2%).

Business employment

Business employment data also released by Stats NZ today showed total actual filled jobs in the June 2025 quarter were 2.26 million – down 0.5%(10,560 jobs) on the March quarter.

At an industry level, the largest changes in seasonally adjusted filled jobs in the June 2025 quarter, compared with the March 2025 quarter, were in construction – down 1.3% (2315 jobs) and administrative and support services – down 1.4% (1337 jobs).

By region, Hawke’s Bay and Auckland saw the biggest falls, down 1.1% and 0.6% respectively.

Today’s data were the last of the second quarter before we get a full GDP (Gross Domestic Product) report next Thursday.

Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.