Economists say even tougher times may lie ahead for the residential construction sector, which recorded its sharpest fall in almost a decade in the last three months of 2008.
New building consents issued in January fell by more than half. The value of total building work in the last three months of 2008 fell 6.5%.
Statistics New Zealand says that was due to a small rise in commercial construction partially offsetting residential construction plunging to its lowest level in six years.
On an annual basis, residential contruction has fallen by almost a third.
ASB economist Jane Turner says the pace of decline in residential construction is accelerating and will prove a significant drag on gross domestic product.
Meanwhile, the building sector is concerned that even renovation work has dried up.
Building Industry Federation chief executive Bruce Kohn says a true measure of building work can be found by looking at the trade being done by building material suppliers and that picture is far from rosy.
He says even renovation work that has been hard to find in the past two months.
