MNI ANALYSIS: Australia Dwelling Approvals Up, Trend Positive

By Sophia Rodrigues

     SYDNEY (MNI) - Dwelling approvals rose more than expected in March, pushing

trend in the positive for three months in a row.

     The rise in trend growth marks a big revision from the February data which

showed trend in negative for five straight months.

     The data is largely in line with the Reserve Bank of Australia's

expectation that dwelling investment would remain at a high level.

     Data published by the Australian Bureau of Statistics Thursday showed

dwelling approvals rose 2.6% m/m in March, higher than MNI median forecast for a

1.0% rise.

     The latest rise was due a 6.8% m/m increase in multi-units approvals,

though in trend terms they were in negative for five months in a row. Approvals

for houses rose for two straight months and in trend terms they were in the

positive in each month in the past year.

     In value terms, total buildings approved fell 0.8% m/m in March as

residential building approvals rose 1.4% while non-residential fell 4.6%. 

     From building approvals data for March published by the Australian Bureau

of Statistics on Thursday:

                                             March                      February

--------------------------------------------------------------------------------

                              (M/M% unless stated;          (M/M% unless stated;

                              seasonally adjusted)          seasonally adjusted)

Dwelling Units

Approved                                      +2.6      -4.2 (revised from -6.2)

MNI Median                                    +1.0

Dwelling Units

Approved (Trend)                              +0.2      +0.3 (revised from +0.1)

Dwelling Units

Approved Y/Y                                 +14.5    -3.1(last month's release)

Private Houses                                +1.1                          +3.1

Private Units

Excluding Houses                              -6.1                         -11.8

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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