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Australia’s dwelling approvals fall to lowest level in 6 years

According to the Australian Bureau of Statistics (ABS), the number of dwellings approved in Australia fell by 3.2 % in January 2019, causing the Australian dollar to fall in response.

January’s decrease in building approvals was driven by private sector dwellings, such as apartments and townhouses, which fell 8.1% in trend terms. Private sector houses fell by 0.4%, according to the ABS.

Director of Construction Statistics at the ABS Justin Lokhorst said that the trend for total dwelling approvals has steadily declined over the past year.

‘The series is now at its lowest level since May 2013’ Lokhorst said.

ABS figures show the trend estimates of the value of total buildings approved fell 1.5% in January and has declined for 14 months. The value of residential building fell 2.0%, while the value of non-residential building rose 6.4%.

ABS figures show, in seasonally adjusted terms, total dwellings rose by 2.5% in January, driven by rises in Western Australia by 28.8%, Tasmania 15.4% and New South Wales 12.0%.

Private dwellings excluding houses rose 2.7%, while private houses also increased by 2.1%.

Company operating profits

ABS figures show, company operating profits in Australia were up 0.8% in the fourth quarter, missing expectations.

Analysts expected a gain of 3.0% following a 1.9% increase in the three months prior.

Inventories fell 0.2% on the quarter, missing forecasts for a gain of 0.3% following the 0.1% drop in Q3.

Wages and salaries were up 0.8% on the quarter and 4.1% in the year.

Australian dollar falls on missed expectations

AUD/USD fell slightly off the back of the news at $0.7085 from dipping below 0.7090 after the release of the data

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