The construction sector is feeling the pinch with declining business confidence and new home consents

NZIER's latest business survey found net 65 percent of the building sector firms surveyed, expect a worsening in the general economic outlook.

This comes as new home consents are down by almost a quarter on the preceding year ending May.

Certified Builders Association Chief Executive Malcolm Fleming says it's clearly affecting some construction businesses.

He says group home builders who primarily deal in new homes are finding it extremely difficult.