Still waiting for a recovery in building approvals

Today’s new building approvals data from the ABS were disappointing, as the recovery in building approvals I thought was occurring a few months ago has not eventuated, and building approvals remain flat at a relatively low level:

It appears OESR were also expecting the turnaround to continue, and I wonder if they’d now revise the following forecast contained in the latest Queensland Economic Review, which was also released today:

A slight turnaround in overall dwelling approvals in Queensland in recent months suggests dwelling investment should recover somewhat in 2012–13…

I’d stick to that forecast, given the underlying strength of the Queensland economy, bolstered as it is by massive resources sector investment. In my view, it remains likely that building approvals and dwelling investment will experience a recovery later this year.

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