Building approvals, which continued to slide in September, confirm the industry is weakening.

Data released from the Australian Bureau of Statistics today revealed the total number of dwellings approved fell 6.6 per cent in September 2010 and are now showing falls for six months, in seasonally adjusted terms.

According to the ABS, Tasmania recorded a rise in dwelling approvals (1.0 per cent) this month, while New South Wales (-1.5 per cent), Victoria (-10.0 per cent), Queensland (-2.3 per cent), South Australia (-24.9 per cent) and Western Australia (-2.0 per cent) all fell, in seasonally adjusted terms.

Private sector houses approved fell 2.2 per cent with falls in Victoria (-3.6 per cent) and Western Australia (-10.7 per cent), while New South Wales (8.1 per cent), Queensland (0.5 per cent) and South Australia (0.4 per cent) rose.

The value of total building approved fell 3.2 per cent in September in seasonally adjusted terms. The value of total residential building fell by 4.5 per cent while non-residential building fell by 0.7 per cent following a rise last month.

The weak data dragged the Australian dollar down to $0.9972, from $1.0004 before. It is now testing support between $0.9965-$0.9975, a break of which could extend a drop to $0.9945 and $0.9913.