ECONOMIC INDICATORS – AUSTRALIA

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.

CORPORATES
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.

CORPORATES
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%.

CORPORATES
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.

CORPORATES
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.

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

ANZ-Roy Morgan Australian Consumer Confidence plunges to 112.3

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Original article by Roy Morgan
Market Research Update – Page: Online : 24-Oct-18

ANZ-Roy Morgan Australian Consumer Confidence fell 6% to 112.3 in the week ended 21 October, closing just below its long-term average and at its lowest level for more than a year. All components of the survey fell sharply. Households’ views towards current financial conditions fell by 7.1%, while sentiment regarding the future financial situation fell by 3.4%. Sentiment towards current economic conditions fell by 5.4%, while sentiment towards future economic conditions fell by 6.5%. The "time to buy a household item" sub-index fell by 7.8%.

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

Jobs figures catch up with economic reality

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Original article by Patrick Commins
The Australian Financial Review – Page: 33 : 23-Oct-18

Australia’s unemployment rate fell from 5.3 per cent to five per cent in seasonally adjusted terms in September, but in reality the official jobless figure was merely moving into alignment with "shadow" labour market indicators. Macquarie Group economist Justin Fabo expects the unemployment rate to be just below five per cent at the end of 2019, while he estimates that a full employment rate in Australia equates to a jobless rate of about 4.5 per cent. Meanwhile, the majority of "shadow" indicators, including Roy Morgan’s household survey, point towards an inflection higher in the official jobless rate.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, ROY MORGAN LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA

Jobless rate at lowest in seven years

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Original article by Michael Roddan, Geoff Chambers
The Australian – Page: 1 & 2 : 19-Oct-18

Australia’s headline unemployment rate fell from 5.3 per cent to five per cent in September, while the trend rate was steady at 5.2 per cent. The Reserve Bank had forecast that the jobless rate would fall to five per cent by the end of 2020, and the latest figures have prompted speculation that it may begin tightening monetary policy sooner than expected. However, Craig James of the Commonwealth Bank does not expect it to take action while the official underemployment rate is 8.3 per cent. Meanwhile, Paul Dales of Capital Economics says a significant increase in wages may be dependent on the jobless rate falling to around four per cent.

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CAPITAL ECONOMICS LIMITED, AMP CAPITAL INVESTORS LIMITED, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NOMURA AUSTRALIA LIMITED

Job market dries up for low-skilled employees

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Original article by Anna Patty
The Sydney Morning Herald – Page: 18 : 18-Oct-18

Anglicare has released a report which notes that low-skilled entry-level jobs accounted for just 26,000 of the 185,662 vacancies that were advertised across Australia in May. The report adds that almost 111,000 people are competing for the limited number of entry-level jobs. This equates to an average of four people nationwide, although Anglicare notes that it is much higher in South Australia and Tasmania. Anglicare’s executive director Kasy Chambers says low-skilled, entry-level jobs are "slowly disappearing".

CORPORATES
ANGLICARE AUSTRALIA

ANZ-Roy Morgan Australian Consumer Confidence rises to 119.5

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Oct-18

ANZ-Roy Morgan Australian Consumer Confidence rose 1.9% to 119.5 in the week ended 14 October, bringing the index to its highest level since late July. Households’ views towards current financial conditions rose 3.3% and sentiment towards future financial conditions rose 0.9%. However, sentiment towards current economic conditions fell by 1.9%, but sentiment towards future economic conditions jumped 3.3%.. The "time to buy a household item" sub-index registered its third consecutive weekly gain, increasing by 3.6%.

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