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Chief Executive Mark Adamson cited spiraling wages and labor-related project delays for the downgrade. "It's the tightness of the market, the availability of subcontractors, and subcontractors obviously pricing to economics 101," he told investors on a conference call. And while the RBNZ stood pat Thursday, citing "extensive geo-political uncertainty," the longer-term outlook is positive, supported in large part by construction. The building boom is a decade in the making, as infrastructure spending increases and house prices climb. "Residential construction is obviously booming," Guy Davidson, director of construction specialists Cobalt Recruitment, told CNBC. "There's a shortfall of about 30,000 to 40,000 homes in Auckland currently and more around New Zealand generally." "Non-residential construction is absolutely booming as well the sector is actually doing precisely double today than it was back in 2011." In 2011, an earthquake killed 185 and leveled large parts of the southern city of Christchurch. Damage to homes and infrastructure was also extensive after a magnitude 7.8 earthquake hit the Kaikoura area last November. And as the rebuilding kicks into high gear, the construction industry is at capacity. Builders, Davidson says, must now focus on filling labor gaps. "The industry needs to keep on making its absolute best effort.
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Eighteen-year-old Lee de Paauw was at a hostel in the northern Queensland town of Innisfail around 2:30 a.m. on Sunday when he started bragging that he could swim in the river, a known habitat for aggressive saltwater crocodiles. Sophie Paterson, a British backpacker who was at the hostel, says others egged him on, though none of them thought he would actually do it. Seconds after jumping into the water, a crocodile latched onto him. Queensland paramedic Neil Noble said the teen was lucky to escape before the crocodile drowned him. Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.