Australia’s building approvals increased in September driven by construction of apartments, figures from the Australian Bureau of Statistics showed Tuesday.
Dwelling approvals rose by seasonally adjusted 3.3 percent in September but slower than the 3.8 percent rise economists had expected.
The increase largely reflects a 9.2 percent rise in private dwellings excluding houses. Private houses dropped 2.7 percent.
On a yearly basis, building approvals plunged 14.1 percent compared to the forecast of a 9 percent decrease.
Overall, the headline gain in dwelling approvals this month is a ‘head fake’, Matthew Hassan, an economist at Westpac said.
Tightening credit conditions are clearly impacting both residential and non residential sectors, Hassan added. The pace of decline remains hard to pin-point but building activity is more clearly tracking towards a contraction in activity heading into 2019.