REPEAT: MNI: Australia Trend Dwelling Approvals Down For 7 Mos

Repeats Story Initially Transmitted at 01:54 GMT Jul 3/21:54 EST Jul 2

--Worries About Dwelling Construction Being Detraction to GDP Growth

By Sophia Rodrigues

     SYDNEY (MNI) - Dwelling approvals in Australia fell for the second straight

month in May, pushing trend into negative for seven straight months and raising

concerns about dwelling construction being a detraction to GDP growth sooner

than expected.

     The Reserve Bank of Australia's current view is that the dwelling

investment pipeline should continue to support a high level of dwelling

investment for some time yet. But this might change when the view on the economy

is updated for the quarterly Statement on Monetary Policy in early August.

     Data published by the Australian Bureau of Statistics Tuesday showed

dwelling approvals fell 3.2% m/m in May, defying MNI median forecast for a 2.0%

m/m rise, though this masked forecasts by two economists for up to 4% fall.

     The latest fall was due to a 8.6% m/m fall in house approvals, the biggest

drop since a 11.8% decline in May 2015. Multi-units approvals rose 4.3% m/m,

rebounding partly from a 14.0% fall the month before.

     Significantly, trend approvals fell 1.5% m/m in May, and has declined for

seven straight months. At 1.5%, trend approvals stood at the worst level since

December 2016. 

     In value terms, total buildings approved fell for the third straight month,

down 0.1% m/m in May after a 3.7% fall in April. The value of residential

building approved fell 0.3% while the value of non-residential rose 0.4%.

     From building approvals data for May published by the Australian Bureau of

Statistics on Tuesday:

                                               May                         April

--------------------------------------------------------------------------------

                              (M/M% unless stated;          (M/M% unless stated;

                              seasonally adjusted)          seasonally adjusted)

Dwelling Units

Approved                                      -3.2       -5.6(revised from -5.0)

MNI Median                     +2.0 (-4.0 to +5.0)

Dwelling Units

Approved (Trend)                              -1.5      -1.4 (revised from -0.1)

Dwelling Units

Approved Y/Y                                  +3.1    +1.9(last month's release)

Private Houses                                -8.6                          +1.4

Private Units

Excluding Houses                              +4.3                         -14.0

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

[TOPICS: MTABLE]