Building permits and mortgage approvals are forward looking indicators as they give an indication to future construction projects. In order to start construction on a home, a building permit must be issued, and this indicator captures the effect. The more homes that are being built and sold, the better that an economy is doing.
Building Permits fell back into negative territory after posting a 3.3% increase in January.
From the Release:
"Building consents for 1,874 new dwelling units were authorised in February 2008, a decrease of 218
units (10 percent) compared with February 2007. There were 173 new apartment units authorised,
compared with 229 in February 2007.
The trend series for authorised new dwellings (both including and excluding apartments) continue to
decline.
The seasonally adjusted number of authorised new dwellings (including apartments) fell 6.5 percent in
February 2008, following a rise of 3.2 percent in January. Excluding apartments, the seasonally adjusted
number fell 3.0 percent following a rise of 5.8 percent, for the same periods."
