— Tom Kennedy, JP Morgan
Australian building approvals rose more than expected in April, official figures revealed on Tuesday. The Australian Bureau of Statistics reported that new approvals climbed 4.4% to 17,414 on a seasonally adjusted basis in April, following the preceding month's upwardly revised fall of 10.3% and surpassing expectations for a 3.2% increase. Still, the number of building approvals was down 17.2% year-over-year, suggesting that the recent construction boom faded. Apartments contributed the most to the reported month's climb. The ABS also reported that building approvals for private sector dwellings, excluding houses, surged 9.6% to 8,039 in April, compared to March's drop of 18.2%. However, despite April's gain, approvals for private dwellings were down 26.5% on an annual basis. Meanwhile, private sector housing approvals rose 0.5% to 9,137 after falling 2.7% in March. Year-over-year, they were down 7.5% in April. The value of new approvals advanced 7.2% last month, compared to March's drop pf 15.4%. The value of residential and non-residential building rose 8.2% and 5.5%, respectively.
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