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MNI BRIEF: Aussie Building Approvals Feel Sting of RBA Hikes

(MNI) Perth

More evidence the Reserve Bank of Australia's cumulative 275bp of hikes is hurting housing sentiment was seen in October's 6% m/m decline in building approvals, according to Australian Bureau of Statistics data released Wednesday.

It was the second month of declines following September's 8.1% fall, with house approvals down 2.4% m/m and unit approvals down 11.3% m/m. Total building approvals are down 6.4% y/y. More weakness in expected, though the tight rental market is expected to provide some support to activity.

Meanwhile, construction work done rose 2.2% q/q in the third quarter, supported by engineering construction. Residential activity rose 1.3%, a weak rebound from a 5.7% decline in the June quarter.

Robert covers RBA and RBNZ policy and the economy for MNI in Australia.
Robert covers RBA and RBNZ policy and the economy for MNI in Australia.

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