shock drop in building approvals

i'm glad we've been told the truth by the bulls about approvals and recovery !

p.s. timbeeeeer !



Building approvals post shock Dec drop

Published 11:34 AM, 4 Feb 2013

Building approvals fell surprisingly in December, against analyst expectations of a rise, according to the Australian Bureau of Statistics.

ABS data showed the number of buildings approved fell a seasonally adjusted 4.4 per cent to 12.767 during the month.

The result compares to an upwardly revised 13,351 units in November.



The median economist forecast was for a one per cent rise in approvals during the month.


numbers worrying: experts

JP Morgan economist Tom Kennedy said the ABS figures also showed approvals for houses fell for the first time since April 2012.

"That is quite worrying because detached dwellings really give you the underlying sense of what's happening in the housing market," he said.

Mr Kennedy said the building approvals data suggested the RBA may need to cut the cash rate (currently at three per cent) again in the next few months in order to support the housing construction sector.

"When you look at the number of building approvals in level terms, they are significantly lower than they were in 2010 and 2009 and if you want to see those levels return I think the RBA is going to have to provide a bit more of an accommodative stance over the coming months," he said.

However, Mr Kennedy said an improving outlook for the global economy, including stronger growth in China, meant the RBA would keep the cash rate on hold at its February board meeting.


Commsec economist Savanth Sebastian said the building approvals figures have been modestly weaker over the past few months.

"It's certainly improving off a low base but there is no significant revival in new approvals coming through," he said.

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http://www.businessspectator.com.au/bs.nsf/Article/Building-approvals-post-shock-drop-in-Dec-pd20130204-4L235?OpenDocument&src=pm&utm_source=exact&utm_medium=email&utm_content=174701&utm_campaign=pm&modapt=news