Local rise in building approvals but pressure remains - 30 Nov

Today’s building approval figures reflect an increase 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 increased in October, however private housing approvals decreased.

Total building approval figures for South Australia increased by a seasonally adjusted 6.1 per cent in October and nationally the figures increased 9.3 per cent from the previous month.

Approvals for private housing in South Australia decreased 2.1 per cent, while national figures increased 1.5 per cent.

Business SA Chief Executive Officer, Peter Vaughan, said that local figures provided mixed news confirming that challenges remain for businesses.

“The increase in local building approvals in October is good news however the November rate rise will no doubt hit these figures,” Mr Vaughan said.

“The small rise in national private housing approvals was the first increase in six months, while the local decrease in private approvals confirms the pressures that remain in the economy.

“These figures certainly do not justify the interest rate rise we saw in November and many sectors of the economy are still struggling.

“Our local unemployment remains above the national average, exports are down and retail trade has been hit hard in recent months.

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