Due at 0130GMT, building permits data for April
- expected -3% m/m, prior +2.6%
- expected +4.1% y/y, prior +14.5%
I posted a preview yesterday: preview of building approvals for April
This one now via Westpac:
- Dwelling approvals firmed in March, rising 2.6% to be up 14.5%yr (albeit with the annual gain exaggerated by monthly volatility affecting the base period). The March rise was led by a solid +6.1% rebound in units, led by high rise, and a reasonably firm 1.1%mth gain for private detached houses.
- Lead indicators continue to point to softening approvals in the months ahead. As we have highlighted for some time, a sharp fall in site purchases last year suggests the pipeline of new high rise projects is set to take another leg lower. Meanwhile, a fall off in construction-related housing finance approvals - which had firmed through the six months to March - is also pointing to a move lower for non high rise approvals. Neither of these indicators are precise enough to pin point the often large monthly swings in approvals. Nonetheless the weakening theme is clear. On balance we expect approvals to retrace 3% in the April month, risks as always centring on the volatile high rise segment.
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Most focus this week from Australia is on the capex data due Thursday
