Decline in local building approvals and exports

Today’s building approval and export figures provide some concern, 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 August, while private housing approvals also decreased.

Total building approval figures for South Australia decreased by a seasonally adjusted 4.1 per cent in August, while nationally the figures increased 11.4 per cent.

Approvals for private housing in South Australia decreased 0.1 per cent from the previous month and national figures decreased 1.0 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said that the data confirmed that it is a tough environment for local businesses.

“South Australia went against the national trend with a decrease in building approvals in August,” Mr Vaughan said.

“The total number of building approvals in South Australia has fallen for the sixth consecutive month, highlighting the pressure being felt throughout the local economy.

“These building approval figures confirm that the two-speed economy is hurting many industry sectors and the Reserve Bank must look at reducing interest rates before the end of the year.

“Economic data continues to highlight that low consumer confidence is restricting spending and businesses are also being hit with a growing list of rising costs.”

International trade figures released today indicate a decrease in exports for South Australia in August.

Nationally, the balance of goods and services for August was a surplus of $3.1 billion (seasonally adjusted), compared with a revised surplus of $1.8 billion in July.

South Australian exports decreased 8 per cent in August, while imports followed the national trend and increased by 3 per cent.

“South Australian exports dropped in August following an increase in the previous month,” Mr Vaughan said.

“The strong dollar and rising costs of doing business continues to make it a challenging environment for our local exporters.

“It is pleasing however that despite these challenges, our local exports have increased over the past 12 months and are well above the level that they were at the same time last year.

“China was replaced as South Australia’s largest trading partner for the month, with Japan being the State’s largest export partner and Singapore leading the way for imports.”