Data is here: Australia September building permits: +1.5% m/m (expected -1.0%)
Via Westpac quick take:
- came in above expectations
- the detail ran contra to expectations in nearly every respect
- non high rise posted another modest gain
- high rise recorded a jump ... almost certainly a by-product of large project 'lumpiness' rather than pointer to renewed vigour in this segment
- state detail showed a surprisingly strong month for high rise approvals in NSW - the state that has seen the most abrupt slowdown across the wider residential market over the last 6mths and where lead indicators such as site sales are clearly pointing to high rise activity taking a another leg lower over the next 12mths.
- Overall we suspect the firmer than expected data this month is a bit of a head fake and that approvals will show a clearer softening trend into year end.
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ps. Trade data also came out for Australia (September) today:
