South Australia bucks the trend

Submitted 5/12/2008

Migration for Business Growth

Today's building approval and export figures show South Australia is in a good position for the New Year, according to the State's leading business organisation, Business SA.

Figures released by the Australian Bureau of Statistics indicate South Australia bucked the trend for private building approvals whilist national figures showed a decline in October.

 Approvals for private housing in South Australia increased 2.9 per cent, whilst national figures decreased 11.4 per cent.

Total building approval figures for South Australia have decreased by a seasonally adjusted 16 per cent in October, indicating that the volatile economic conditions are showing some effect.

Business SA Chief Executive Officer, Peter Vaughan, said that building approval figures indicated that further interest rate cuts in the New Year would be required.

"An increase in assistance to first home buyers along with interest rate cuts will help restore construction confidence nationally," Mr Vaughan said.

"These two factors combined will help to continue growth in the South Australian private building sector."

International trde figures released today indicate an increase in exports and imports for South Australia in October.

South Australian imports increased 2.5 per cent in October, against the national trend, whilst export also increased by 2.7 per cent.

The national surplus on goods and services for October was $1.9 billion (seasonally adjusted), from a revised $1.5 billion surplus in September.

"Exports have increased mainly due to the falling Australian dollar," Mr Vaughan said.

"It is positive to see South Australia bucked the national trend with a 2.5 per cent increase in imports."

"However, we may see the value of future exports decrease due to weakening commodity prices.'

Almost 60 per cent of participants in The Commonwealth Bank Business SA Survey of Business Expectations expect export sales to be stagnant in the last quarter of 2008, mainly due to uncertainties surrounding the value of the Australian dollar.