A sharp drop in the statistically volatile multi-residential sector in New South Wales has precipitated a substantial fall in monthly building approvals throughout Australia, albeit with the overall data continuing to imply strong levels of new construction activity.

On a seasonally adjusted basis, the overall number of dwelling units approved for construction throughout Australia dropped 5.6 percent in April to be now only 1.1 percent above the same level twelve months ago. Leading the fall was the statistically volatile multi-residential sector, whereby a monthly drop of almost 40…