Building approvals hit by rate rise

6 January 2011

Today’s building approval figures reflect a decrease in local building approvals, according to the State’s leading business membership organisation, Business SA.

Figures released by the Australian Bureau of Statistics indicate South Australia’s total building approvals decreased in November, while private housing approvals were flat.

Total building approval figures for South Australia decreased by a seasonally adjusted 2.7 per cent in November and nationally the figures decreased 4.2 per cent from the previous month.

Approvals for private housing in South Australia remained steady following a decrease the previous month, while national figures decreased 1.7 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said that local figures reflected the pressure being felt in the lead up to Christmas.

“The interest rate rise in November had a major impact throughout the economy and this is reflected in the data,” Mr Vaughan said.

“These are among a range of figures that do not justify the recent interest rate rise and many sectors of the economy were hit hard in the lead up to Christmas.

“Also impacting on building approvals is the low population growth, which is at its lowest rate since March 2007.

“The fall in both local and national building approvals confirms the low levels of business and consumer confidence throughout the country.

“Businesses and families remain under pressure and interest rates must be left on hold in the coming months.”