SA building approvals bounce back in January: figures

A rise in building approvals is good news for South Australia, the state's peak business group says.

Business SA chief executive Peter Vaughan said the rebound in the figures in January came in a challenging environment but was the first increase in four months.
 
In figures released by the Australian Bureau of Statistics on Thursday total building approvals in SA in January increased by a seasonally adjusted 6.9 per cent compared to a 0.9 per cent increase nationally.
 
Private housing approvals rose by 10.5 per cent in SA compared to 0.1 per cent across the country.
 
"Local building approvals have been under pressure in recent months, reflecting the challenges that continue to restrict the building and construction sector and overall business and consumer confidence," Vaughan said.
 
"Building approvals are heavily sensitive to interest rate levels and while the two cuts before Christmas provided some relief, further action is required."
 
Vaughan said given the general weakness in building sector, as well as in many other parts of the economy, the Reserve Bank should consider another interest rate cut next week.

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