ABS figures show new home building approvals are on the rise

The latest batch of data from the Australian Bureau of Statistics shows that the number of housing builds that were approved increased 1.1 per cent in July, continuing the trend from the previous month.

The increase was large enough to help influence a 0.9 per cent jump in the total approval numbers for Australian dwelling units.

The July increase marked the eighth consecutive month of gains for house building approvals. Western Australia led the way with an approval rating of 2.8 per cent, and South Australia trailed just behind at 2.4 per cent.

Ben Jarman, an economist with JPMorgan Chase, stated that it makes sense that housing approvals are on the rise. What remains to be seen, he added, was if the rises seen in past months are a sustainable trend.

"We're reasonably upbeat about what building approvals can do this year," he told The Australian Associated Press.

"In fact, we think they will be adding more to growth than they have in the last few quarters."

With new home builds on the rise, the demand for hired equipment, such as electric tools and access products, will likely jump in the near future as well.