By James Glynn
SYDNEY--The number of Australian home-loan approvals rose a seasonally adjusted 2.4% in July from June, the Bureau of Statistics said Monday.
Economists surveyed ahead of the announcement had expected a rise of 2.0%. The value of loans for investment housing in July rose 2.9% from June, the ABS said.
While other economic indicators such as consumer confidence have been patchy this year, home loans have steadily risen--creating a small bright spot in an otherwise darkening economic outlook as a mining boom that has powered growth for a decade slows.
Home loan approvals data signal whether consumer demand for debt is increasing, making it a useful measure of sentiment at a time when many Australians still prefer to save their money amid continuing anxiety over the state of the global and local economy.
The central bank rate has cut interest rates steeply since late 2011 to a record low 2.5%, in a bid to spur weaker parts of the economy like consumer sentiment and construction.
Loan approvals to build new houses fell 2.1% in July from June. Approvals to buy new homes rose 5.9%, while lending for already built houses rose 2.7% in the month.
-Write to James Glynn at james.glynn@wsj.com
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