Australia’s weaker housing, business confidence may slow hiring

Australian home-loan approvals dropped for the first time in 10 months and business confidence sank to a five-month low, signs that job growth may struggle to rebound after stalling last year.

The number of loans granted to build or buy houses and apartments fell 1.2 percent in January, a government report showed in Sydney today, twice the 0.6 percent drop forecast by economists. A private survey of 500 companies taken Feb. 20-24 and released earlier today showed business confidence fell last month to the lowest level since September.

The data added to a string of weaker-than-forecast economic figures in Australia, where the benchmark interest rate of 4.25 percent is the highest among major developed economies. Reserve Bank Governor Glenn Stevens kept borrowing costs unchanged last week as policy makers rely on a A$456 billion ($481 billion) pipeline of resource investment to spur growth and employment.  

Source: BusinessWeek.com