MNI BRIEF: Aussie Building Approvals Feel Sting of RBA Hikes
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.