Auckland’s economy presents a mixed picture in the September 2024 update, reflecting contrasting trends across different sectors.

For the year ending June 2024, Auckland’s real GDP declined by 0.1%, a slight improvement over the 0.2% drop recorded for the rest of New Zealand.

Despite these decreases, both figures are above the lows seen during the Covid-19 pandemic and the Global Financial Crisis (GFC), though below long-term averages from 2010 and 2011.

Retail sales in Auckland fell by 3.7% over the past year, the steepest decline since 2009, surpassing even the reductions seen during the 2020 lockdowns.

Nationally, retail sales dropped by 4.4%, underscoring ongoing economic challenges.

On a positive note, employment in Auckland rose by 0.5% in the quarter ending June 2024.

This increase comes amid a lower labour force participation rate and a higher unemployment rate, which stood at 4.6%—the second-highest since early 2021 but still below the levels seen from 2009 to 2016.

The rate is slightly above the averages from 2017 to 2019.

Trade figures show a significant decrease in imports, with Auckland's seaports handling $30.4 billion worth of goods, a 7% drop from the previous year but an 8% rise compared to five years ago.

In contrast, the rest of New Zealand saw a more pronounced 19% fall in import values.

In the housing market, rental prices remained stable, with the average weekly rent in Auckland at $684, unchanged from the previous year in real terms.

However, the number of homes sold dropped to 20,762 for the year ending July 2024, a 43% decrease from the July 2021 peak.

The median house price for July 2024 in Auckland was $950,000, a 7% decrease from a year ago and 2% below levels from nine years prior.

This reflects a cooling in the housing market, with prices 36% below the peak in 2021.

Construction data indicates a slowdown, with new dwelling consents falling to 13,662, a 38% decrease from the September 2022 peak.

The value of new non-residential buildings consented also dropped to $2,655 million, down 22% from November 2022 but still 19% higher than the 2020 low.

Overall, these figures highlight a period of economic adjustment for Auckland, with significant variations across different sectors.