Rising housing approvals good for construction

If the latest numbers coming out about the Australian residential housing industry are anything to go by, there's going to be a greater demand for diggers and other heavy machinery in the coming months. 

Building approvals in the country saw a 9.9 per cent increase during May, reaching a total of 16,425. These numbers come after what was a weak April for the housing industry. 

"This reflects confidence in the industry and will provide a pipeline of work for up to the next three years," said Master Builders of Australia Chief Executive Wilhelm Harnisch in a July 3 statement. 

Mr Harnisch singled out New South Wales, Queensland and Tasmania as stand-out states. NSW and Queensland led the approvals among the states, while Tasmania experienced a 9.6 per cent rise in approvals. 

According to the Housing Industry Association (HIA), the peak numbers coming out at the end of 2013 and January 2014 were followed by a decline in approval numbers, leading some to question the continued strength of the recovery in home building. 

"This result gives us confidence that the recovery has a way to run yet," said HIA Economist Geordan Murray in a July 3 release.