ECONOMIC INDICATORS – AUSTRALIA

Unemployment rises to 9.7% in December – Under-employment at record high

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Jan-16

A Roy Morgan Research survey on Australia’s labour market has found that the real unemployment rate was 9.7 per cent in December 2015, compared with 9.2 per cent in November. The number of people in the workforce now totals 13,007,000 (up 106,000 since December 2014), and 11,751,000 Australians are employed (up 252,000 since December 2014). Meanwhile, the number of people who are under-employed has risen by 188,000 in the last 12 months, to a record 1,434,000 (11 per cent of the workforce). The official unemployment rate was 5.8 per cent in November 2015. Roy Morgan Research executive chairman Gary Morgan says the key point for Prime Minister Malcolm Turnbull and the Coalition Government as they contemplate when to hold the Federal Election is how to properly manage the Australian economy to ensure growth and provide jobs for the growing workforce. Changing industrial relations laws and work practices can only be effective if the "cash economy" is tackled at the same time – otherwise any efforts at IR reform will be of limited benefit as Government revenue increases will be negligible.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Off-the-plan values plummet in Melbourne

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 8 : 4-Jan-16

Analysis by WBP Property Group shows that there has been a sharp fall in the value of apartments bought off-the-plan in Melbourne during the last two years. The firm has reported that the average value of almost 2,000 apartments fell by around $A40,000 in 2014 and 2015. Kim Quick of Herron Todd White says there has not been a similar downturn in apartment values in Sydney, noting that the residential market has benefited from the New South Wales Government’s infrastructure program.

CORPORATES
WBP PROPERTY GROUP PTY LTD, HERRON TODD WHITE AUSTRALIA PTY LTD

ANZ-Roy Morgan Australian Consumer Confidence: A Cheerier Christmas

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 15-Dec-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.8 per cent to 115.4 in the week ended 13 December 2015, consolidating after the 3.1 per cent bounce in the previous week. Confidence remains well above levels seen last Christmas (up 4.7 per cent compared with this time last year), and is still above its long- run average. The decline was relatively broad-based, with confidence in financial conditions falling by 2.6 per cent and the economic outlook down 1.3 per cent. Roy Morgan Research executive chairman Gary Morgan says the Turnbull Government has injected confidence in the economy, but the end of the commodities boom is only now starting to have an impact on the Australian economy. Unless real action is taken to get the private sector moving consumer confidence will deteriorate in 2016. Tax reform alone will be of limited value while significant sectors of the economy, such as the cost of the Public Sector and the "cash economy", are immune.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

RBA’s Stevens sees hope in jobs growth

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 16-Dec-15

The Reserve Bank of Australia reduced its economic growth forecast in November 2015, but governor Glenn Stevens does not believe another downgrade is needed in the near-term. Stevens has also given indications that further interest rate cuts may not be necessary in the current monetary policy cycle, noting that the unemployment rate is well below the central bank’s expectations earlier in 2015. He adds that the downturn in commodity prices may put further downward pressure on the Australian dollar.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BUREAU OF STATISTICS, UNITED STATES. FEDERAL RESERVE BOARD

Surprise job boom rules out rate cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 11-Dec-15

Official data from the Australian Bureau of Statistics shows that the economy added 71,400 jobs in November 2015, while a total of 301,700 jobs have been created since the start of the year. The national unemployment rate has fallen to 5.8 per cent, while the unemployment rate in New South Wales has fallen to 5.2 per cent. Some 127,000 jobs have been created nationwide in the last two months, which may prompt the Reserve Bank to leave the cash rate on hold in February 2016.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF EMPLOYMENT, COMMONWEALTH SECURITIES LIMITED, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, JP MORGAN AUSTRALIA LIMITED

ANZ-Roy Morgan Australian Consumer Confidence bounces back to 116.3 (up 3.5pts)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 8-Dec-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 3.1 per cent to 116.3 in the week ended 6 December 2015. Confidence has now retraced most of the falls seen in the last three weeks, and levels are now back well above their long-run average. The strength was seen across all sub-indices. The sub-index on consumers’ views towards their current finances rose by 5.4 per cent, while the sub-index on economic conditions in the next 12 months rose by 3.3 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Employment at record high – 11.8 million Australians employed

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 7-Dec-15

A Roy Morgan Research survey on Australia’s labour market has found that the real unemployment rate was 9.2 per cent in November 2015. The number of people in the workforce now totals 12,954,000 (up 297,000 since November 2014), and a record 11,768,000 Australians are employed (up 372,000 since November 2014). Meanwhile, the number of people who are under-employed has risen by 119,000 in the last 12 months to a record 1,350,000 (10.4 per cent of the workforce). The official unemployment rate was 5.9 per cent in October 2015. Roy Morgan Research executive chairman Gary Morgan says that although Prime Minister Malcolm Turnbull has gained popular support amongst Australian electors, the L-NP has not gained majority support among young electors, and the employment situation for students over the next few months is crucial for the Federal Government.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Beyond the boom: life in economy

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Original article by David Uren
The Australian – Page: 1 & 4 : 3-Dec-15

The latest GDP data shows that the Australian economy expanded by 0.9 per cent in the September 2015 quarter, and 2.5 per cent year-on-year. The quarterly GDP data bolstered both the Australian dollar and the local sharemarket on 2 December, while it will also help improve the Budget bottom line. Meanwhile, domestic demand has risen by 4.2 per cent in Victoria and 2.6 per cent in New South. However, the decline in capital investment in the resources sector has resulted in domestic demand falling in Western Australia and Queensland.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BUREAU OF STATISTICS, BARCLAYS BANK PLC, AUSTRALIAN LABOR PARTY

ANZ-Roy Morgan Australian Consumer Confidence deteriorates – down to 112.8

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 1-Dec-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 1.5 per cent to 112.8 in the week ended 29 November 2015, taking the cumulative fall over the last three weeks to 3.3 per cent. The four-week moving average remains elevated; however, it is now trending downwards – suggesting that confidence has turned. The sub-index for consumers’ finances compared with a year ago fell by 5.1 per cent, while the sub-index for economic conditions in the next 12 months fell by 3.4 per cent. Roy Morgan Research executive chairman Gary Morgan says the continuing war in Syria and Iraq, and the threat of terrorism around the world, is having a clearly negative impact on Consumer Confidence and Australia’s economic fortunes. He adds that the best defence Australia can have against unrest overseas is for a strong economy in Australia – and this is why Prime Minister Malcolm Turnbull must be prepared to make the tough decisions now to give Australia the best chance of strong economic growth, and continuing jobs growth, over the years ahead.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Sydney, Melbourne property prices hit the skids

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 7 : 2-Dec-15

New figures from CoreLogic RP Data show that dwelling values fell in five of Australia’s eight capital cities during November 2015. There was a 1.4 per cent decline in home values in Sydney during November and a one per cent downturn in the three months to November. Meanwhile, home values in Melbourne fell by 0.5 per cent for the quarter and 3.5 per cent in November. However, both cities are continuing to record double-digit annual growth in home values.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, RESERVE BANK OF AUSTRALIA