Investor loans fall to lowest level in 12 months

http://www.smh.com.au/business/the-economy/investor-loans-fall-to-lowest-level-in-12-months-as-banks-react-to-tighter-apra-regulations-20170711-gx8rlv.html Tighter APRA regulations have pushed investors out of the housing market and given leeway to first-home buyers Business conditions also reached a multi-year high in June according to a National Australia Bank business survey, echoing back to pre-global financial crisis levels ABS figures: home loans to investors as a proportion of all loans dropped…… Continue reading Investor loans fall to lowest level in 12 months

July Monetary Policy Decision

  Cash rate to remain at 1.5% Broad-based pick-up in global economy continuing; labour markets tightening in many countries; forecasts for global growth have been revised up wards from last year. China: while growth is being supported by increased spending on infrastructure and property construction, high levels of debt continue to present a medium-term risk…… Continue reading July Monetary Policy Decision

‘Manufacturing: A Moment of Opportunity’ is manufacturing poised for a recovery?

https://www.theguardian.com/business/2017/jun/21/australias-manufacturing-industry-on-rebound-report-says Report says Australian manufacturing jobs have swelled by 40,000 in the past 12 months, the second-largest number of new jobs created in any industry – and productivity has returned to near its previous peak Since 2008, manufacturing sector’s real output has declined by 13% (compared to its pre-financial crisis peak), and employment by a…… Continue reading ‘Manufacturing: A Moment of Opportunity’ is manufacturing poised for a recovery?

Global banks reduce lending to worst fossil fuel emitters by billions in 2016

World’s largest banks lent $87bn to oil, coal and LNG companies in 2016 – a 22% drop from a collective $111bn worth of lending in 2015 Banking on Climate Change: Fossil Fuel Finance Report Card 2017, shows the world’s largest banks – including the Commonwealth Bank, Westpac, ANZ, and NAB< lent a collective $87bn to…… Continue reading Global banks reduce lending to worst fossil fuel emitters by billions in 2016

Unemployment falls to 5.5% in May

http://www.theaustralian.com.au/business/economics/unemployment-falls-to-55pc-in-may-as-figures-beat-expectations/news-story/5ede0c480628e1a16a6d0275c3afab26 Australia’s unemployment rate dropped to a four-year low in May to a lower than expected seasonally adjusted 5.5% from 5.7% in April Lowest jobless rate since February 2013 Seasonally adjusted workforce participation rate rose to 64.9% in May from 64.8% n April Supports view that there is an underlying strength in the economy despite…… Continue reading Unemployment falls to 5.5% in May

Why Is Wage Growth So Low?

https://www.rba.gov.au/publications/bulletin/2015/jun/pdf/bu-0615-2.pdf stronger growth in labour productivity has worked to contain growth in labour costs Declining wage growth reflects spare capacity in the labour market, a decline in inflation expectations, a lower terms of trade, and the need for the real exchange rate to adjust to improve international competitiveness. Decline in ToT and fall in mining…… Continue reading Why Is Wage Growth So Low?

Summary of the April RBA monetary policy meeting

http://www.rba.gov.au/monetary-policy/rba-board-minutes/2017/2017-04-04.html International economic conditions Global economic conditions have improved over 2017 Growth in industrial production has increased Business conditions in manufacturing and services sectors at high levels Significant increase in the growth of global merchandise trade volumes, driven by stronger demand from east Asia and the US Merchandise imports to some emerging markets has stopped…… Continue reading Summary of the April RBA monetary policy meeting