Australian Economic Update

Australia: building approvals and exports continued to slide in January

Australian Economic Update

Trade balance and building approvals

• Trade surplus widened less than expected

• Exports slumped 5%m/m in January

• Building approvals fell 3.7%m/m, or 34%oya

The ABS this morning released data on building approvals and trade for the month of January. The fall in building approvals was in line with our forecast, but the trade surplus narrowed more than we had anticipated, owing to a sharp fall in exports.

Building approvals declined 3.7%m/m in January (J.P.Morgan -4.0%, consensus +1.0%), after falling 1.9% in December. The January fall marked the seventh straight monthly decline, continuing the downtrend that has emerged amid low confidence, elevated construction and material costs, excessive red tape in the building sector, and persistent funding pressures which continue to deter new development. The trend in the value of total building approved fell 4.3%m/m.

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ENDS

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