Obviously today’s shocking building approvals data from the ABS increase the chances of an interest rate cut tomorrow (see Pressure grows for rate cut). Based on the ABS’s trend estimates for the major States, Queensland is the only State in which building approvals, which predict future construction activity, appear to be recovering (although approvals in Queensland remain at below pre-GFC levels):

I’m a little surprised by the WA estimate, and I wonder if it is a supply-side issue. Is dwelling construction in Perth constrained by shortages of building workers who are all away working in the mines?