MNI Australia Jul Dwelling Approvals Down, Trend Negative

-

By Sophia Rodrigues

     SYDNEY (MNI) - Dwelling approvals in Australia fell in July to post the

third decline in four months, pushing trend back into negative and to the lowest

since December 2016.

     The data suggests dwelling construction may not remain as elevated as the

Reserve Bank expects, and that could impact growth and inflation forecasts for

the economy. 

     Data published by the Australian Bureau of Statistics Thursday showed

dwelling approvals fell 5.2% m/m, compared with 6.8% rise in June. The outcome

was worse than MNI median forecast for a 3.0% fall but just within the range

predicted by economists in the poll.

     The 5.2% fall in July, follows a 6.4% drop in April, 2.7% fall in May and

the 6.8% rise in July.

     The latest fall pushed trend back into negative, down 1.3% m/m in July

after a revised 0.7% fall in June which was revised down from 0.1% rise. The

trend is now negative for eight months in a row.

     The fall in total approvals was driven by a 3.0% fall in private sector

houses and a 6.6% fall in multi-units. 

     In value terms, total building approved fell for the eighth straight month

in trend terms. The value of residential building approved fell 1.8% and the

value of non-residential was flat.

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

[TOPICS: MALDA$,MALDS$,MMLRB$,M$A$$$,M$L$$$,MT$$$$]