Building approvals rose in October: ABS

The news: Total building approvals rose in October after slipping the month before, but remain weaker overall in the new financial year.

The numbers: Dwelling approvals lifted 7.5% in October after slipping 4% the month before. This financial year 55,029 homes have been approved compared to 65,599 over the same period last year. October's uptick was led by increases in Western Australia (+11.0%), Queensland (+10.7%), and NSW (+9.6%), while approvals in Tasmania (-14.4%), South Australia (-7.2%), and Victoria (-1.4%) lost ground.

The context: Building approvals have been fluctuating between expansion and contraction in recent months but have remained low in historical terms as higher costs, higher interest rates and labour shortages continue to put pressure on builders, while rates and inflation restrict purchaser appetites.