Housing foundations are starting to shake

The surprisingly large fall in home building approvals in November 2015 is a warning shot for those sailing on a sea of complacency with respect to the Australia’s economic outlook. We have previously warned of downside risks to the economy in 2016 due to the housing sector. While many analysts last year simply celebrated the high level of home building construction, we began to worry that downside risks were growing. This fear is beginning to show through in the data. To read this analysis click here: (VIEW LINK)