ECONOMIC INDICATORS – AUSTRALIA

ANZ-Roy Morgan Australian Consumer Confidence regains to 119.8

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Original article by Roy Morgan
Market Research Update – Page: Online : 14-Nov-18

ANZ-Roy Morgan Australian Consumer Confidence rose 2.6% to 119.8 in the week ended 11 November. Consumer confidence is now higher than it was heading into the Wentworth by-election. Households’ views towards current and future financial conditions rose 3.9% and 2.2% respectively, while sentiment towards current and future economic conditions rose 7% and 4.5% respectively. The "time to buy a household item" sub-index fell by 3.1%, only partial reversing the previous week’s gain of more than 9%.

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

Wages growth tipped to hasten

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Original article by Vesna Poljak
The Australian Financial Review – Page: 25 : 12-Nov-18

The upcoming release of wage price index data for the September quarter will be a key focus for economists and investors in the next week. The general consensus of economists is for WPI growth of 0.6 per cent for the quarter and 2.3 per cent year-on-year. Felicity Emmett of the ANZ Bank expects a 3.5 per cent increase in the minimum wage that took effect at the start of July to have increased the WPI by about 0.15 per cent.

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HSBC AUSTRALIA HOLDINGS PTY LTD, BLOOMBERG LP, RESERVE BANK OF AUSTRALIA, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA

Unemployment unchanged at 9.4% in October

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Original article by Roy Morgan
Market Research Update – Page: Online : 12-Nov-18

A Roy Morgan survey shows that 12,194,000 Australians were employed in October 2018, up 427,000 over the past year. The increase was driven by equivalent increases in full-time employment (which was up 173,000 to 7,887,000) and part-time employment (up 254,000 to 4,307,000). The figures also show that 1,265,000 Australians (9.4% of the workforce) were unemployed in October, an increase of 39,000 on a year ago. In addition, 1,242,000 Australians (9.2% of the workforce) were under-employed, working part-time and looking for more work, an increase of 134,000 in a year (up 0.7%). In total 2,507,000 Australians (18.6% of the workforce) were either unemployed or under-employed in October, an increase of 173,000 in a year (up 0.6%). Roy Morgan’s real unemployment figure of 9.4% for October remains substantially higher than the current ABS estimate for September of 5.0%. Roy Morgan CEO Michele Levine says the persistent high level of under-employment – which is up more than 130,000 from 1.1 million a year ago – is likely to emerge as a key election issue over the next few months.

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ROY MORGAN LIMITED, AUSTRALIAN BUREAU OF STATISTICS

ANZ-Roy Morgan Australian Consumer Confidence continues recovery to 116.8

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Original article by Roy Morgan
Market Research Update – Page: Online : 8-Nov-18

ANZ-Roy Morgan Australian Consumer Confidence rose 1.9% to 116.8 in the week ended 4 November. Consumer confidence has now regained almost two-thirds of the drop seen after the Wentworth by-election. Households’ views towards current financial conditions rose by 1.7%, but sentiment regarding the future financial situation fell by 0.4%. Sentiment towards current and future economic conditions fell by 1.9% and 0.4% respectively. The "time to buy a household item" sub-index rose by 9.7%.

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

Finance riddled with rent seekers

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Original article by Adam Creighton
The Australian – Page: 2 : 7-Nov-18

Productivity Commission chairman Michael Brennan says much of the Australian banking and wealth management industry’s revenue can be attributed to excessive fees that are a result of limited competition. Financial services is now the biggest sector of the domestic economy; it accounts for nearly nine per cent of economic output, compared with around four per cent in the early 1980s. Meanwhile, Brennan says that health and education reforms will be essential in lifting the nation’s productivity rate.

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AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BANKING ASSOCIATION

Hope mounts for improvement in real wages index

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Original article by Vesna Poljak
The Australian Financial Review – Page: 7 : 2-Nov-18

Australia’s wage price index recorded growth of 2.1 per cent year-on-year in the June quarter. The latest wage price index data, to be released on 14 November, will attract close scrutiny after inflation rose by 0.4 per cent in the September quarter and 1.9 per in the year to September. David Bassanese of Betashares notes that the wage price index data for the September quarter will be affected by the 3.5 per cent increase in the minimum wage that took effect at the start of July.

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BETASHARES CAPITAL LIMITED, AUSTRALIA. FAIR WORK COMMISSION, RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Stubbornly low inflation confounds RBA

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Original article by Michael Roddan
The Australian – Page: 2 : 1-Nov-18

Official data shows that Australia’s headline inflation rate fell to 1.9 per cent in the year to September, compared with 2.1 per cent in the year to June. The underlying inflation rate has fallen to 1.7 per cent. The CPI figures show that an increase in the cost of utilities, tobacco and petrol in the September quarter was offset by a 12 per cent decline in childcare costs following changes to federal subsidies. Despite the fact that inflation is now below the Reserve Bank’s target range of 2-3 per cent, most economists do not expect an increase in official interest rates until at least the end of 2019.

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AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD

ANZ-Roy Morgan Australian Consumer Confidence recovers to 114.6

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Original article by Roy Morgan
Market Research Update – Page: Online : 31-Oct-18

ANZ-Roy Morgan Australian Consumer Confidence rose 2% to 114.6 in the week ended 28 October, regaining a third of the previous week’s decline. Households’ views towards current financial conditions rose by 3.1%, while sentiment regarding the future financial situation rose by 1.5%. Sentiment towards current economic conditions rose by 6.2%, more than recovering the previous week’s fall of 5.4; sentiment towards future economic conditions rose by 3.1%. However, the "time to buy a household item" sub-index fell by 2.5%.

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

Film, TV aim to build on record year

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Original article by Max Mason
The Australian Financial Review – Page: 5 : 30-Oct-18

Australia’s film and TV industry spend a record $718m on local productions in 2017-18, which is seven per cent higher than previously. Spending on feature films rose from $287m to $321m, although spending on TV dramas fell from $321m to $295m. However, Screen Australia’s COO Michael Brealey notes that expenditure on drama remained above its five-year average. Local film and TV production is forecast to remain strong in 2018-19, while Screen Australia expects the federal government’s location incentive program to boost the number of international productions.

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SCREEN AUSTRALIA, VILLAGE ROADSHOW LIMITED – ASX VRL, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED

Treasury in warning on saving raids

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Original article by Michael Roddan
The Australian – Page: 1 & 2 : 25-Oct-18

Australia’s household savings rate fell to one per cent in June, compared with 2.5 per cent one year earlier. Treasury secretary Phil Gaetjens has told the Senate economics committee that it is likely to fall further as low wages growth forces consumers to use more of their savings. Treasury expects economic growth to continue to be bolstered by consumer spending, but Alan Oster of National Australia Bank says the bank’s own data indicates that consumer spending is not as strong as official figures suggest. Meanwhile, independent economist Saul Eslake says falling asset prices are likely to prompt consumers to reduce their spending.

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AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB