Floods knock out ap­provals

Townsville Bulletin - - Investor -

BUI L DI NG ap­provals in Jan­uary fell heav­ily for their big­gest monthly slump in more than eight years as flood­ing in Queens­land and Vic­to­ria ex­ac­er­bated t he slow­down.

How­ever, while the slump was well be­low mar­ket ex­pec­ta­tions for a 3.5 per cent de­cline, econ­o­mists were largely un­con­cernedas Jan­uary was a tra­di­tion­ally slow month for the hous­ing in­dus­try.

Aus­tralian build­ing ap­provals fell 15.9 per cent to 12,342 units i n Jan­uary, sea­son­ally ad­justed, from an up­wardly re­vised 1 4 , 6 8 2 units in De­cem­ber, Aus­tralian Bu­reau of Sta­tis­tics ( ABS) data showed yes­ter­day. West­pac se­nior econ­o­mist Matthew Has­san said the Jan­uary fig­ures were al­ways go­ing to be very weak, with flood­ing drag­ging down the head­line num­ber.

‘ ‘ Se­vere f l ood­ing meant there would have been lit­tle or no ap­proval pro­cess­ing or ap­pli­ca­tion ac­tiv­ity in af­fected ar­eas – most of Queens­land and sig­nif­i­cant parts of NSW and Vic­to­ria,’’ Mr Has­san said.

SLUMP: Jan­uary is tra­di­tion­ally a bad month for build­ing

ap­provals but floods wors­ened the sit­u­a­tion

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