Comments via Twitter from Shane Oliver, Head of Investment Strategy & Chief Economist at AMP Capital here in Australia
building approvals … falling sharply
- driven by sharp falls in unit approvals … House approvals also trending down and non-residential building approvals weak
There is still a large pipeline of work to be done & more stable renovations will help
- but fall in approvals points to falling residential construction (cutting ~ -0.4% pts from GDP growth)
- Expect ~ -1% pts from negative wealth effect
Consistent with our view RBA will cut this year
(bolding mine)
Also, re the monthly inflation figures earlier also:
- sub-target inflation continuing into January
On the job ads data
- pointing to slowing momentum in employment ahead
