 Building approvals up
July recorded huge numbers for residential building approvals but other sectors show signs of a struggle.
The number of buildings approved for construction rose 7.7 per cent in July from June, despite predictions of just a 3.3 per cent rise. This rise was much better than had been expected and has offered hope to many industries.
The improvement is thought to be due to the surge of first home buyers taking advantage of the extention of the grant, as well as low interest rates.
Before the latest data, and yesterday's weak quarterly business data, economists had been forecasting 0.7 per cent GDP growth for the June quarter when the national accounts are released tomorrow.
Residential building data is strong and approvals for private homes rose for a seventh straight month.
Demand for new homes comes off the back of increased first home grants, low interest rates and other stimulus packages.
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