Australian Building approvals for August
-6.9% m/m
- expected -2.0%
- prior was +7.9%, revised from +4.2%
+5.1% y/y
- expected +7.4%
- prior was +17.9%, revised from+13.4%
Note the higher revisions to July's data - a positive
The trend measure continues to decline
the drop in building approvals led by multi-unit developments
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Westpac commentary:
- Approvals came in weaker than expected
- Fall in units dragging total approvals down ... There does appear to be an underlying downtrend emerging in this segment but the extreme choppiness - centred on high rise approvals - makes it unclear how rapid the decline is
- Decline comes off a slightly better base though with the July estimate revised up
- Volatility continues to cloud the situation in terms of underlying trends, even outside the noisy 'high rise' component
- In contrast, private sector house approvals surged ... a relatively big move for what is usually a more stable segment
- The detail suggests the 'high rise' boom in Vic has ended (noting that there was a likely pull forward in approvals ahead of a new levy in July) but is holding up in NSW where non-high rise approvals are showing a renewed rise.
- The value of renovation and non residential approvals was both down sharply in the August month.
