Free Trial

REPEAT: Australia Dwelling Approvals Down But Trend Positive

Repeats Story Initially Transmitted at 02:10 GMT Aug 30/22:10 EST Aug 29
     SYDNEY (MNI) - From building-approvals data for July published by the
Australian Bureau of Statistics on Wednesday:
                                              July                          June
--------------------------------------------------------------------------------
                              (M/M% unless stated;          (M/M% unless stated;
                              seasonally adjusted)          seasonally adjusted)
Dwelling Units
Approved                                      -1.7    +11.7 (revised from +10.9)
MNI Median                -5.0(range -12.0 to 0.0)
Dwelling Units
Approved (Trend)                              +0.7                          +0.7
Dwelling Units
Approved Y/Y                                 -13.9   -2.3 (last month's release)
Private Houses                                 0.0                          +4.0
Private Units
Excluding Houses                              -6.7                         +21.3
     FACTORS: The number of dwellings approved fell in July, giving back just a
small portion of the sharp 11.7% m/m rise in June. The latest fall was mainly
due to a 6.7% drop in multi-unit approvals which followed a sharp 21.3% rise in
June. Private house approvals were flat in July, and in trend terms have risen
for five straight months. Overall dwelling approvals rose 0.7% m/m in trend
terms and have risen for three consecutive months.  
     Total building approvals by value fell 0.4% in July, due mainly to a 2.2%
drop in residential building approvals that offset a 2.4% rise in
non-residential approvals.
     TAKEAWAY: The outcome was higher than a MNI median forecast but within the
range predicted by economists in the survey. The data for second quarter
construction work done published Wednesday showed dwelling construction fell for
the second straight quarter but looking ahead the approvals data show housing
construction is likely to remain high. In the August Statement on Monetary
Policy, the Reserve Bank of Australia noted that home building approvals had
been lower than their recent peaks for some time which suggests that the
pipeline of work to be done will start to fall over the forecast period. "The
contribution to GDP growth from dwelling investment over the forecast period is
expected to be minimal," the RBA said.
--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com
[TOPICS: MTABLE]

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
}); window.REBELMOUSE_ACTIVE_TASKS_QUEUE.push(function(){ window.dataLayer.push({ 'event' : 'logedout', 'loggedOut' : 'loggedOut' }); });