Australia Building approvals for September: +14.4% m/m (vs. expected +2.8%)

Australia Building approvals for September +18.6% y/y (vs. expected +1.2%)

  • Well in excess of expectations and this is going to be a very positive sign for the RBA that the economy (and in particular the housing sector) is showing ‘transition’ from the resource -extraction sectors to domestic strength.
  • Its going to be another nail in the coffin of the ‘one more rate cut’ expectations camp
  • AUD/USD ticking higher after the release, but it isn’t running away. AUD sellers up ahead

The m/m change graph:

Australia September 2013 Building Approvals
abs 1
abs building approvals summary october 31 2013

Source: http://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0?OpenDocument

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Comments from AMP chief economist Shane Oliver in immediate wake of data:

  • Australian credit growth still soft in September at +3.3%yoy and Q3 trade price data points to another terms of trade fall
  • but 14% surge in Australia September building approvals (driven by apartments but private house also up) confirms housing construction pick up underway