Steady retail and rising housing approvals offset export slump

The Australian Bureau of Statistics (ABS) released a range of economic updates today, highlighting shifts across building approvals, export prices, and retail spending for September 2024.

In building approvals, the seasonally adjusted total for dwellings rose by 4.4% to 14,842 units in September. This uptick follows a 3.9% fall in August. Private sector house approvals climbed by 2.2%, reaching 9,745, marking the highest level since August 2022. Approvals for other private sector dwellings rose by 4.7%, driven mainly by high-density apartment approvals, although they remain 12.2% lower than a year ago. Geographically, approvals surged in Queensland (14.3%), Western Australia (11.4%), and South Australia (8.2%), while New South Wales saw a decline of 14.8%.

The export price index fell by 4.3% for the September quarter, representing a third consecutive quarterly decline, with an annual drop of 6.8%. Prices for key Australian exports like coal, coke, and metalliferous ores saw significant declines, falling by 8.9% and 8.6%, respectively. The ABS attributed this drop to subdued demand from China’s property market, which has weakened steel production and reduced demand for Australia’s iron ore. Meanwhile, the price of crude fertilisers and minerals dropped 14.4% in the quarter due to increased global lithium supply. In contrast, gold prices rose by 4.4% as demand from central banks increased amid global uncertainty.