Approvals figures for dwellings, in this case, apartments and houses, have been heading south since mid-2018. As an indicator of investor confidence, falling approval figures represent a worrying signal, not just for the building sector but for the overall economy. The most recent figures offer a ray of hope and some economists think the bottom of the cycle may be approaching. However, other economists are still wary.
The Australian Bureau of Statistics has now released the latest building approval figures and they indicate total approvals have made a slight recovery. Seasonally-adjusted, total approvals increased by 0.7% in May, which is above the market consensus figure of no change and an improvement on April’s revised figure of -3.4%. On an annual basis, total approvals fell by 19.6%, as compared to April’s comparable figure of -23.4% after revisions.
