ECONOMIC INDICATORS – AUSTRALIA

250,000 find work in jobs surge

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Original article by David Uren
The Australian – Page: 2 : 15-Sep-17

Australia’s unemployment rate was steady at 5.6 per cent in August 2017, with the economy adding 54,000 jobs during the month. The latest labour force data also shows that 250,000 jobs have been created nationwide over the last six months, including 94,600 in Queensland and 82,800 in New South Wales. Meanwhile, the labour market participation rate has risen to a record 77.6 per cent, while the proportion of people with a job or actively looking for work has reached a five-year high of 65.3 per cent.

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AUSTRALIA. DEPT OF THE TREASURY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH SECURITIES LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, HSBC AUSTRALIA HOLDINGS PTY LTD, UBS HOLDINGS PTY LTD, JP MORGAN AUSTRALIA LIMITED

Wealthy carrying big debt, says ABS

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Original article by Jacob Greber
The Australian Financial Review – Page: 9 : 14-Sep-17

The Australian Bureau of Statistics estimates that the proportion of households that are overindebted rose from 21 per cent in 2003-04 to 29 per cent in 2015-16. Chief economist Bruce Hockman says the mean household debt increased by 83 per cent in real terms over this period, while mean asset value and gross income rose by 49 per cent and by 38 per cent respectively. Hockman adds that 47 per cent of the nation’s wealthiest households that have an outstanding property loan are overindebted.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS

ANZ-Roy Morgan Consumer Confidence slips 3.8% to 109.8 on Wage Concerns

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 13-Sep-17

ANZ-Roy Morgan Australian Consumer Confidence fell 3.8% to 109.8 in the week ended 10 September 2017, largely offsetting the gains over the previous two weeks. The weakness was broadly based, with a sizeable decline in households’ perceptions of the economic outlook driving the deterioration in sentiment. After two consecutive weeks of improvement, consumers’ views towards current and future economic conditions dipped, down 8.1% and 7.2% respectively. The average of these two measures is at its lowest level in 16 weeks. Households’ views towards current financial conditions slipped 0.3%. Partially offsetting this weakness, sentiment around future financial conditions rose a solid 3.7%. Looking through the weekly volatility, confidence in overall financial conditions has remained broadly unchanged over the past two months, hovering around its long-term average.

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

Apartment slowdown to hit economy hard: Triguboff

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Original article by Turi Condon
The Australian – Page: 2 : 11-Sep-17

Apartment prices have fallen by around 10 per cent over the past six months, according to Harry Triguboff. Australia’s biggest builder of apartments says governments may need to take action if prices, along with new apartment starts, continue to fall. He says trends that are seeing young people share or stay with their parents for longer is hurting new apartment construction, as is tepid wages growth.

CORPORATES
MERITON APARTMENTS PTY LTD, RESERVE BANK OF AUSTRALIA, BIS OXFORD ECONOMICS, AUSTRALIA. DEPT OF THE TREASURY

Soaring electricity prices an obstacle to wage rises

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Original article by Jacob Greber, David Marin-Guzman
The Australian Financial Review – Page: 7 : 8-Sep-17

Employers’ groups have warned that the rising cost of electricity is affecting their capacity to grant pay rises. Australian Industry Group CEO Innes Willox notes that companies’ margins are being hurt by rising power costs, while consumers in turn are reducing their overall spending due to the impact of power price hikes. Australian Chamber of Commerce & Industry CEO James Pearson adds that many companies are delaying investment decision due to rising power costs, and some are considering relocating offshore.

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THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, BUSINESS COUNCIL OF AUSTRALIA, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD

Australia’s real unemployment is up to 10.2% in August

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 8-Sep-17

A Roy Morgan survey shows that 1.324 million Australians were unemployed (10.2% of the workforce) in August 2017. This is similar to a year ago (down 8,000, or 0.2%). However, more Australians are now under-employed than this time last year; 1.241 million (9.5%) Australians are looking for work or looking for more work), up a significant 324,000 (2.4%) in a year. In total, 2.565 million (19.7%) Australians were unemployed or under-employed in August – the 23rd straight month more than 2 million Australians were looking for work or looking for more work. The figures also show that 11,685,000 Australians were employed in August – an increase of 162,000 over the past year (an average of 13,500 jobs added per month). The Roy Morgan real unemployment figures are substantially higher than the current ABS estimate for July (5.6%). Roy Morgan Research executive chairman Gary Morgan says the large increase in part-time jobs over the last year (up 535,000 or about 45,000 per month) obscures the loss of full-time jobs (down 373,000, just over 30,000 per month).

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ROY MORGAN RESEARCH LIMITED, AUSTRALIAN BUREAU OF STATISTICS

Wage growth going backwards

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 4 : 7-Sep-17

National accounts data shows that 240,000 jobs were created in Australia during the year to June 2017. However, the figures also show that wages grew by just 0.7 per cent in the June quarter and 2.1 per cent year-on-year. Likewise, annual growth in compensation per hour is at its lowest level in almost 25 years, at negative 0.3 per cent in the June quarter. Reserve Bank of Australia governor Philip Lowe recently forecast that growth in wages in some sectors will eventually be extended to the broader economy, but the national accounts data suggests that this is not yet occurring.

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AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

ANZ-Roy Morgan Australian Consumer Confidence Edges Higher – up 0.6pts to 114.1

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 6-Sep-17

ANZ-Roy Morgan Australian Consumer Confidence edged up 0.5% to 114.1 in the week ended 3 September 2017, following a 3.9% rise in the previous week. Households’ views towards current financial conditions slipped 2.0%, partially unwinding the previous 4.7% rise. Similarly, sentiment around future financial conditions fell 1.7%, following a solid 6.4% increase earlier. Despite the fall, confidence in overall financial conditions remains close to its long-term average. Meanwhile, consumers’ views towards current and future economic conditions posted another solid rise (2.6% and 5.5% respectively). Even so, views towards both current and future economic conditions are running below long-run averages.

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

Australian Inflation Expectations up to 4.5% in August. Generations Y & Z consistently have highest Inflation Expectations

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Sep-17

Australians aged +14 expect inflation of 4.5% per year over the next two years, according to the Roy Morgan Inflation Expectations Index for August 2017. This is up 0.2% in a month and up 0.6% from August 2016. However, it is well below the seven-year average of 5.1%. Analysis by State shows that Inflation Expectations are highest in Tasmania at 4.9%, closely followed by New South Wales (4.8%) and Queensland (4.6%). Inflation Expectations in Australia’s other States were below the national average. Analysing Inflation Expectations by generations reveals a clear split in how different generations view Inflation. The two youngest generations consistently have higher Inflation Expectations than older generations.

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ROY MORGAN RESEARCH LIMITED

Business Confidence down in August to 114.4 as high energy prices a threat to economic growth

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Sep-17

Business Confidence in Australia fell 2.6pts (-2.2%) to 114.4 in August 2017, according to the Roy Morgan Business Single Source survey, following extensive discussions about the high cost of energy in Australia. However, businesses remain largely positive with a majority of businesses expecting to be "better off" financially this time next year (51.7%), and most businesses say now is a good time to invest in growing the business (54.9%). The fall in Business Confidence was driven by large falls in confidence in several industries including Manufacturing, Electricity, Gas, Water and Personal, repair and other services.

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