These figures are a big miss on expectations, very poor figures indeed.
- Australia Building Approvals for June: -6.9% m/m (vs. expected +2.0%). Prior was revised for -1.1 to -4.3%
- Australia Building Approvals for June: -13.0% y/y (vs. expected at 0.0%). Prior was revised from -3.2% to -2.2%
- and private housing approvals down 1.1% from +2.5% prior
The RBA wants to see a ‘transition’ from mining-related activity into other sectors of the economy. This data is not strongly indicative of that transition occurring. This data is another point in favour of an August 6 rate cut, in fact barring anything strongly against from Stevens in his speech today, an August rate cut is odds-on.
