Free Trial

REPEAT:MNI:Australia Dwelling Approvals Up; Trend Now Positive

Repeats Story Initially Transmitted at 02:19 GMT Jul 31/22:19 EST Jul 30
--House Approvals Post Biggest M/M Rise Since Dec 2015
By Sophia Rodrigues
     SYDNEY (MNI) - Dwelling approvals in Australia rose in June for the first
time in three months, and at the fastest rate since January, pushing trend rate
back in to positive.
     The data alleviates concern about dwelling construction being a detraction
to GDP growth sooner than previously expected and the Reserve Bank might
continue with the narrative that the dwelling investment pipeline should
continue to support a high level of dwelling investment for some time yet. 
     Data published by the Australian Bureau of Statistics Tuesday showed
dwelling approvals rose 6.4% m/m in June, beating MNI median forecast for a 1.0%
m/m rise and well outside the range predicted by economists.
     The latest rise was due to a 5.0% m/m increase in house approvals, the
biggest rise since December 2015. Multi-units approvals rose for the second
straight month, up 7.2% m/m compared with a 4.2% rise in May. 
     The June increase pushed trend approvals into positive for the first time
since November last year, up 0.1% m/m versus a downwardly revised 0.7% fall in
May.
     In value terms, total buildings approved fell for the fourth straight
month, down 1.2% m/m in June compared with a 0.8% fall in May. The value of
residential building approved rose 1.8% while the value of non-residential fell
7.0%.
     From building approvals data for June  published by the Australian Bureau
of Statistics on Tuesday:
                                              June                           May
--------------------------------------------------------------------------------
                              (M/M% unless stated;          (M/M% unless stated;
                              seasonally adjusted)          seasonally adjusted)
Dwelling Units
Approved                                      +6.4       -2.5(revised from -3.2)
MNI Median                     +1.0 (-3.0 to +3.0)
Dwelling Units
Approved (Trend)                              +0.1      -0.7 (revised from -0.5)
Dwelling Units
Approved Y/Y                                  +1.6    +3.1(last month's release)
Private Houses                                +5.0                          -7.4
Private Units
Excluding Houses                              +7.2                          +4.2
--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' }); });