Building approvals fell 4.6% in September: ABS

The news: Dwelling approvals fell 4.6% in September, after rising for the first time since May in the previous month.

The numbers: Private sector approvals for buildings excluding houses fell 5.1% after a 10.1% lift in August, while approvals for private sector houses fell 4.6% after a 7.2% bounce a month earlier. Total building approval slumps were led by Western Australia (-11.1), NSW (-10.5%) and Victoria (-8.9%), as Queensland (+34.6%), Tasmania (+18.3%) and South Australia (+5.1%) recorded upswings. The value of total building approvals sank 4.9% in September after holding steady in August. The value of total residential building fell by 2.9% to 7.03 billion, including a 3.6% drop in new residential building to $5.96 billion, while non-residential building value fell 7.2% to $5.56 billion.

The context: Residential construction levels continue to drag in a high-interest, high-inflation environment, despite the demand for housing. Australia's vacancy rates are at record lows, and high rents and housing costs are key drivers of inflation in Australia's economy.