It is staggering that some who should know better reckon that the building approvals data for December were weak.
OK, the number of building approvals fell 2.9% in December in seasonally adjusted terms, but this must be viewed in the context of earlier readings.
Those readings show that the number of building approvals in the December quarter as a whole was the highest since 1994 and the second highest quarterly result ever recorded. Sound weak to you?
The ABS measure of the trend series has increased every month, including December, for two years to be at the highest level since 1994.
Dwelling construction is in a boom.
Making the outlook for the construction sector all the more positive is that non-residential building is explosive with quite phenomenal double digit growth over the second half of 2013.
As mining investment falls away, it looks like construction of hotels, office blocks and shopping centres are taking off.
