Positive Housing Numbers

In economics news there were some more positive housing numbers yesterday - this time from Australia. Building approvals were up 3.5% in Mch, following the 8% gain in Feb. This is the biggest back to back gain since Oct 2003. House approvals rose for the fourth straight month, lifting by 3.4% in Mch - this is the biggest increase in two years. Pretty positive even if it is off a low base. That should help get a bit of development application revenue into Council.

This is a good indication that some of the stimulus is hitting the housing sector. Combined with a tight rental market, low interest rates and soaring population growth this sector seems to be building a solid base.

Despite the RBA's rate pause yesterday we will continue to see the effects of this recession play out for sometime. Yesterday, for instance, figures showed SMEs are struggling with a 64% increase in bankruptcies in this sector. Unfortunately for them they haven't benefited from recent easings either.