Fletcher Building has returned to profitability after a challenging period, but warns that political uncertainty surrounding the upcoming New Zealand election is hindering new house builds. According to the company’s CEO, election-related anxieties are contributing to increased interest rates, negatively impacting the company’s financial performance. These higher rates are deterring potential homebuyers and slowing down new construction projects across the country. The company is currently engaged in “very delicate negotiations”, the details of which were not disclosed, but are likely affected by the unstable economic climate. Despite the return to profit, Fletcher Building anticipates continued challenges as long as the political landscape remains ambiguous. The construction sector is particularly sensitive to shifts in economic confidence, and the election is creating a wait-and-see approach among investors and consumers alike. This ultimately contributes to a slowdown in housing developments.