Responses to the Australian Sep. building approvals data miss

The September building permits data is here from earlier: Australia building approvals for September: -8.7% m/m (vs. expected -3.0%)

Responses so far from Westpac and NAB

WPAC:

• Approvals dropped,... within the range of "normal" volatility for month to month reads


• Detail shows a sharp 16.3% drop in units was the main driver in the month ... within this segment the "usual culprit" when there is volatility - high rise approvals - was down just over 20% in the month but down only slightly on a year ago, reflecting the high starting point following a big surge in July


• The combined picture from "non high rise" approvals now show a trend decline for six consecutive months tracking at a 10-15% annual pace


• The signal from "high rise" remains much less conclusive - despite the drop it is unclear whether the segment is levelling out or turning down with approvals uneven across the major states as well.

NAB:

• Building approvals for September lower than expected ... all from a 16.3% decline in apartment approvals


• The trends in (apartments and house approvals) are close to flat (apartments -0.7% m/m, houses -0.5%)


• Trend residential approvals still running at an annual rate of 238K ... Still a solid number, but it seems that the cycle is topping out at a high level
  

Responses to the Australian Sep. building approvals data miss
Responses to the Australian Sep. building approvals data miss
http://www.forexlive.com/feed/news
$inline_image