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Analysts at ANZ note that the Australia’s building approvals improved in January, following two steep declines in the preceding months.

Key Quotes

“The overall trend in approvals remains soft, but it is slightly encouraging that the pace of declines at the end of 2018 hasn’t continued. Nevertheless, the number of approvals remains well below where they were a year ago. While the amount of work yet to be done remains elevated, the fall in the level of building approvals will weigh on construction activity this year and next.”

“Australian residential building approvals rose 2.5% m/m in January, following a 8.1% decline in December. The improvement was led by a 3.8% increase in unit approvals (from an 18.7% fall), while house approvals rose 1.9% (from a 1.7% decline). The trend in approvals remains soft though, with approvals falling 3.2% m/m in trend terms and 28.6% year-on-year.”