Investment records biggest fall in 3½-years

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  New business investment in buildings or equipment fell by 4.7 per cent in the March – the weakest result in 3½-years and below forecasts for a +0.5 increase.  Mining investment fell by 6.2 per cent while manufacturing spending fell by 0.8 per cent and spending by other industries fell by 2.9 per cent  The [...]

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Smallest Budget Deficit in almost four years

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In the year to April, the budget deficit stood at $32,332 million (around 2.0 per cent of GDP), the smallest deficit in 44 months. What do the figures show? The underlying budget deficit for the twelve months to April stood at $32.332 billion, the lowest annual deficit in 44 months and a $11.4 billion improvement [...]

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Budget 2013 – honey, who ate the surplus?

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The Federal Budget is hardly the most riveting document you are ever likely to read. Sure you know it’s important, but the problem is that it’s a huge document with countless facts, figures and tables. And when it comes to analysis, economists seem to be writing for other economists; and accountants writing for other accountants. [...]

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Home loans soar but business confidence still gloomy

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The number of new owner-occupier housing loans rose by 5.2 per cent in March, the strongest rise in four years. But the share of loans taken up by first home buyers fell to a near 9-year low. What does it all mean? Reserve Bank Board members are probably wincing after the latest home loan data. [...]

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15 key takeouts from RBA report

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The Reserve Bank has made only subtle changes to its forecasts on inflation and no change to forecasts on economic growth. Reserve Bank general views haven’t become more negative or more positive. And there is no clear intention for rates to be cut again. The 15 key take-aways from the Reserve Bank report: There is no [...]

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Interest rates hit 53 year lows

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The Reserve Bank Board has cut interest rates by 25 basis points to 2.75 per cent. Equivalent official interest rates were last at these levels in 1959/60.The next RBA Board meeting is on June 4 2013. The Reserve Bank has adopted the global central bank manta of “doing whatever it takes” to get the economy [...]

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CommSec Investor Snapshot: Interest rates are low, but how low?

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Reserve Bank Board makes its decision today: Most economists expect no change in interest rates. How low are interest rates? Currently the official cash rate stands at 3.00 per cent – equalling lows set from April-October 2009. But the cash rate is largely at these lows because banks haven’t been in a position to fully [...]

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One-minute update: subdued business inflation paves way for a rate cut

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The broad measure of business inflation – the producer price index (PPI), or final stage prices, – rose by 0.3 per cent in the March quarter to stand 1.6 per cent higher than a year ago. What do the figures show?  The Producer Price Index (PPI), or final stage prices, rose by 0.3 per cent [...]

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Aussies are still saying no to debt

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Private sector credit (loans outstanding) rose by 0.2 per cent in March. Credit stands 3.2 per cent higher than a year ago but has grown at a 2.2 per cent annualised pace in the past six months – a 38-month low. What do the figures show? Private sector credit (lending) rose by 0.2 per cent [...]

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State & territory economic performance report

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How are Australia’s states and territories performing? Each quarter CommSec attempts to find out by analysing eight key indicators: economic growth; retail spending; equipment investment; unemployment, construction work done; population growth; housing finance and dwelling commencements. Just as the Reserve Bank uses decade averages to determine the level of “normal” interest rates; we have done [...]

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