Growth prospects remain mixed across the country

Thu, 07 Sep 2017  |  

The Dun & Bradstreet Business Expectation survey confirmed a mixed picture for the economy.

The full report is at this link https://dnb.com.au/article-bex-q4-2017-final.html#.WbBm1zOB24k 

 ------------------------------------------------------------

Growth prospects remain mixed across the country

Uncertain economic conditions continue to impact optimism across the Australian business landscape, with sentiment softening for the final quarter of 2017. In Dun & Bradstreet's August Business Expectations Survey, businesses predicted lower sales, employment and selling prices for the December quarter, despite a general pick-up in business activity during the June quarter. However, capital investment and profits are tipped to rise.

"The uncertain outlook for the economy was confirmed in the latest Business Expectations Survey, which saw a pull-back in business optimism across most of the key components of the economy. Overall business expectations were flat into the December quarter confirming a lower level of optimism than had been evident in the June quarter, a time when expectations were at a cyclical high."

 

comments powered by Disqus

THE LATEST FROM THE KOUK

Memo to RBA – be careful what you wish for. House prices are falling

Fri, 19 Jan 2018

The recent house price data from Corelogic are showing further falls in house prices.

The falls are, disconcertingly, most evident in Sydney where prices have dropped 0.5 per cent so far in January, which brings the aggregate fall since the September 2017 peak to a chunky 2.9 per cent. This means that for a $1 million property in September, the value has fallen $29,000 in just 4 months.

The house price weakness is not confined to Sydney.

In Melbourne, the Corelogic data shows house prices topping-out. Prices are down 0.3 per cent from the December 2017 peak which, to be sure, is not a large decline after the stunning increases of previous years, but a fall it is.

I'm out of the hammock to look at some facts about Australia's labour market

Thu, 18 Jan 2018

There was another round of euphoria as the monthly labour force data hit the screens. The data showed a nice 34,700 rise in employment in December which brought the total rise in jobs in 2017 to 403,100.

This is good news, to be sure, but how good is it really? What is the context for this increase in employment and how is Australia going in an ever vibrant and dynamic global economy?

Of some concern, Australia’s unemployment rate remains at 5.5 per cent – it actually ticked up from 5.4 per cent the prior month. Interestingly, and something less favourable, is the fact that the unemployment rate has been below 5.5 per cent for just two months (October and November 2017) in the last four and half years. Where is that 5 per cent or lower full-employment target everyone reckons we are near?

What’s more interesting, and a sign of the policy sloth that Australia is enduring at the moment, is that around the world, unemployment rates are falling and are impressively low.

Sure each country will have its quirks but have a look at our 5.5 per cent against these countries.