Oz shows signs of recovery as building approvals bounce back

Australia's Housing Industry Association revealed new figures this week showing that the number of house-building approvals rebounded in November after recording their lowest level in 29 months in October 2011.

“Building approvals for both detached houses and other dwellings saw increases in November 2011, although the results come off a low base and total approvals remain significantly down on a year earlier,” HIA senior economist, Andrew Harvey told OPP.

Seasonally-adjusted building approvals rose by 8.4% following a 10% drop in October and a 14.8% fall in September. Detached house approvals rose by 4.9% in November while approvals for other dwellings rose by 16.1%. Total November approvals were down by 18.9% on one year earlier.

“At least today’s approvals update is on the right side of zero growth, but the level of total approvals remains weak and serves to reinforce the need for further interest rate cuts in the first half of 2012,” added Harvey.

Source: OPP.org.uk