Westpac Economics weekly update

Dwelling approvals and credit data provided a useful update on the outlook for residential investment this week. We know that the approvals trend is turning, but assessing the scale of the coming fall is being hampered by significant monthly volatility. Across the states, NSW is showing relative strength; Vic is seeing signs of a material decline in the making; Qld's is flatlining; and WA is already in the midst of its decline. A positive from the credit data was another robust print for business credit; the partial data is also positive, but it is early days yet. Overseas, our Westpac-MNI Consumer Sentiment survey highlighted the impact of weak global demand on employment in China; however, we drew some comfort over China's domestic demand outlook from the improvement in households' perceptions of their family finances -- with support obviously coming from policy makers' actions and signs of improving conditions in the housing market. Tonight sees the release of September nonfarm payrolls in the US; for Australia, the RBA will be the focus next week. (VIEW LINK)