The Australian Bureau of Statistics (ABS) has just released building activity data for the March quarter, the highlight of which is the sharp contraction in dwelling completions. According to the ABS, there were only 32,557 (seasonally-adjusted) dwellings completed in the March quarter, which is a decade low (see below chart).
The trend in dwelling completions is down across the mainland, with the exception of Victoria. Housing construction in Queensland and New South Wales, in particular, is in a funk (see below chart).
The only bright spot for the building construction industry is that dwelling approvals picked-up in May – signalling a lift in future activity – although the trend in approvals is down too (see below chart).
Where are those school halls when we need them?
Twitter: Leith van Onselen. Leith is the Chief Economist of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.
