- For the m/m, expected 1.5%, prior was 5%
For the y/y: 20.0%
- expected +31.0%, prior was +23.2%
Westpac:
- Approvals a touch softer than expected in March
- The surprise was well within the range of this often noisy series
- The broader picture is still of activity ‘topping out’ at a high level rather than a swing into declines.
- Overall, the takeout from this detail is that there was some ‘lumpiness’ in the headline fall with the segments less exposed to large projects showing a more moderate decline.
- That shows through to some extend in the state data which showed some big moves in total approvals (Vic –12.5%mth, WA –9.1%mth, NSW +8%mth) but more stable readings on private sector house approvals (Vic –2.8%mth, WA 1.7%mth, NSW +0.2%mth).
Commonwealth Bank senior economist Michael Workman:
- (building approvals were still 20 per cent higher than a year ago means) “there is still a significant boost coming to construction and spending which will help offset the winding down of resources investment from its recent peak”
- “The trends in building approvals data will help significant parts of the economy through rising revenues, fuller order books, more employment and higher retail spending. Building multipliers are among the strongest in the economy”
