ECONOMIC INDICATORS – AUSTRALIA

Wage rises outpacing living costs

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Original article by David Uren
The Australian – Page: 1 & 2 : 18-Sep-18

Labour market economist Mark Wooden says that Australia has recorded 31 per cent growth in wages over the last decade, while inflation has increased by just 22 per cent over this period. The director of the Household, Income and Labour Dynamics Australia survey notes that the cost of living has not increased significantly in the last year, with big rises in the cost of petrol and electricity being offset by lower prices for some consumer goods. Professor Wooden adds that the HILDA data shows that income inequality has eased slightly in recent years. The HILDA survey is conducted by the University of Melbourne with interviewing conducted by Roy Morgan.

CORPORATES
UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, ROY MORGAN LIMITED

Business Confidence in August hit by political uncertainty

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Original article by Roy Morgan
Market Research Update – Page: Online : 10-Sep-18

Roy Morgan Business Confidence was down 3.4 points (-3%) to 110.2 points in August. However, analysing Business Confidence throughout August shows Consumer Confidence before August 20 was 115.0 points, while it plunged to 99.5 points during the last third of the month beginning the week of the leadership challenge (August 20-31, 2018). In August, Business Confidence remained below its level of a year ago and is now 4.2 points lower than in August 2017 and 6.1 points below its long-term average of 116.3 points. However, despite now falling for four consecutive months, Business Confidence throughout the first eight months of 2018 has averaged 116.6 points – above the long-term average and the highest yearly average since 2014. Businesses remain largely positive in August with a majority of businesses, 50.5% (unchanged) expecting ‘good times’ for the Australian economy over the next five years and nearly half, 47.8%, saying now is a ‘good time to invest in growing the business’.

CORPORATES
ROY MORGAN LIMITED

Worrying sign investment has peaked

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Original article by Patrick Commins
The Australian Financial Review – Page: 8 : 31-Aug-18

The Australian Bureau of Statistics has reported that business investment fell by 2.5 per cent in the June quarter; economists had been tipping an increase of 0.6 per cent. Mining sector spending was down 7.2 per cent over the quarter, while non-mining investment declined by 0.5 per cent. However, companies increased their business investment forecast for 2018-19 to just under $102 billion, an increase of 16.1 per cent on the last forecast three months ago.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN LABOR PARTY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CAPITAL ECONOMICS LIMITED, TD SECURITIES, AMP LIMITED – ASX AMP, LIBERAL PARTY OF AUSTRALIA, BIS OXFORD ECONOMICS PTY LTD

Townhouses rise as approvals fall

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Original article by Michael Bleby
The Australian Financial Review – Page: 34 : 31-Aug-18

New building approvals fell by 5.2 per cent in seasonally adjusted terms in July when compared to June, according to official figures released on 30 August. Approvals for detached dwellings declined in all mainland states except Queensland, while townhouse approvals increased by 3.9 per cent. Townhouse approvals for the 12 months to July totalled 36,423, compared to 34,256 approvals for the 12 months to August 2016. In comparison, approvals for high-rise apartments have declined from 76,947 in the 12 months to August 2016 to 65,478 in the 12 months to July 2018.

CORPORATES
POLY GROUP CORPORATION, JP MORGAN AUSTRALIA LIMITED, STOCKLAND – ASX SGP

ALP inequality claims sunk

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Original article by Adam Creighton
The Australian – Page: 1 & 6 : 29-Aug-18

The Productivity Commission has released a report which concludes that inequality in Australia has not increased significantly over recent decades. The report found that real incomes increased by an average of more than two per cent annually between 1989 and 2016. Chairman Peter Harris says all income groups have benefited to some extent from Australia’s economic growth over the last 27 years. However, he notes that nine per cent of Australians are living in poverty. Shadow treasurer Chris Bowen claimed in 2017 that income inequality was at its highest level in 75 years.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, NATIONAL PRESS CLUB (AUSTRALIA), UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH

ANZ-Roy Morgan Consumer Confidence bounces to 116.5

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Original article by Roy Morgan
Market Research Update – Page: Online : 29-Aug-18

ANZ-Roy Morgan Australian Consumer Confidence rose 2.1% to 116.5 in the week ended 26 August, following a 3.5% decline in the prior week. Households’ views towards current financial conditions improved 1.2%, largely recovering from the 1.3% fall in the previous week. Sentiment towards future financial conditions bounced a solid 3.1%, partially reversing the 7.6% tumble in the week prior. Consumers were also more optimistic about current economic conditions – their assessment improved 2.9%, ending the subindex’s streak of weekly declines. Of particular note, views towards future economic conditions jumped 6.1% – more than reversing the previous week’s 5.3% decline and bringing the subindex to its highest value in six weeks. The "time to buy a household item" subindex slipped 2.2% to 126.5, compared with a long-term average of 134.0.

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

ANZ-Roy Morgan Consumer Confidence falls to 114.1

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Original article by Roy Morgan
Market Research Update – Page: Online : 22-Aug-18

ANZ-Roy Morgan Australian Consumer Confidence fell 3.5% to 114.1 in the week ended 19 August, its third straight weekly fall. Households’ views towards current financial conditions fell 1.3%, following a 1.0% fall in the week prior, and sentiment towards future financial conditions fell 7.6% to its lowest level in a year. Consumers also continued to be less optimistic about current economic conditions – their assessment declined another 0.8%, the third consecutive weekly fall. Views towards future economic conditions tumbled 5.3%, following a modest decline of 0.3% in the previous week. The "time to buy a household item" subindex slipped another 1.5% to 129.3, compared with a long-term average of 134.0.

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

Inflation Expectations of Home Owners lower than a year ago

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Original article by Roy Morgan
Market Research Update – Page: Online : 20-Aug-18

Australians aged +14 expect inflation of 4.3% per year over the next two years, according to the Roy Morgan Inflation Expectations Index for July 2018. This is down 0.2% from a month ago, and unchanged from July 2017. Inflation Expectations have now tracked in a narrow range between 4.3-4.5% for 13 straight months. Inflation Expectations remain well below the eight-year average of 5.0%. Analysis shows that Inflation Expectations for home owners in the three months to July 2018 dropped to 3.8%, down 0.1% on the same period a year ago, while Australians who are paying off their home had Inflation Expectations of 4.1% in the three months to July, up 0.1% on a year ago although still below the national average. Inflation Expectations for renter were at 5% for the three months to July, up by 0.2% from a year ago. July Inflation Expectations are based on a nationwide face-to-face survey of 5,288 Australians aged 14+.

CORPORATES
ROY MORGAN LIMITED

Headline jobless rate hits lowest in nearly six years

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Original article by Patrick Commins
The Australian Financial Review – Page: 7 : 17-Aug-18

Official data shows that Australia’s unemployment rate fell from 5.4 per cent to 5.3 per cent in July, to its lowest level since late 2012. More than 19,000 full-time jobs were created in July, offsetting the loss of 23,200 part-time positions, and the labour force participation rate eased from 65.7 per cent to 65.5 per cent. The official unemployment rate has been consistently around the 5.5 per cent level for much of the last year, but the Reserve Bank recently forecast that it will fall to five per cent in 2020.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIAN LABOR PARTY, JP MORGAN AUSTRALIA LIMITED

Pay gap at lowest in 20 years as employers react

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Original article by Ewin Hannan
The Australian – Page: 2 : 17-Aug-18

The Workplace Gender Equality Agency estimates that the national gender pay gap for full-time employees fell to 14.6 per cent in 2017-18, compared with 15.3 per cent in the previous financial year. The full-time average weekly earnings of men was $1,678.40, compared with $1,433.60 for women. The agency’s director Libby Lyons says the national gender pay gap could be eliminated if all employers undertook a pay audit and took appropriate action.

CORPORATES
AUSTRALIA. WORKPLACE GENDER EQUALITY AGENCY, AUSTRALIAN BUREAU OF STATISTICS