Job losses and murky outlook

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Employment fell by 27,000 in June after a revised 27,900 (previously 38,900 in May). Economists had expected a flat result. In June part-time jobs rose by 6,600 after falling by 8,600 in May. Full-time jobs fell by 33,500 after rising by 36,400 in May. The unemployment rate rose from 5.1 per cent to 5.2 per [...]

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Business confidence slides to a ten-month low

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The NAB business confidence index fell from -2.2 to – 2.7 in June – a ten-month low. Business conditions improved from a 3-year low, up from -3.9 to -1. The survey of over 300 businesses took place from June 19 – June 29. Across the sub-indices, profitability improved from a three-year low, the index of [...]

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Chinese inflation sidelined

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China’s annual inflation rate fell from 3 per cent to 2.2 per cent in June – a 29-month low. The June result was marginally better than forecasts centred on a result near 2.3 per cent. What does it all mean? The latest inflation data confirms that China’s policymakers can put inflation concerns to rest and [...]

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Retail stimulus

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Retail spending rose by 0.5 per cent in May after lifting by an upwardly revised 0.1 per cent in April. Annual spending growth rose from 2.4 per cent to 3.5 per cent. Non-food retailing rose by 0.9 per cent in May to be 3.4 per cent higher than a year ago – marking the biggest [...]

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Reserve Bank maintains a watching brief

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The Reserve Bank Board left the official cash rate on hold at 3.50 per cent. The cash rate is at the lowest level in 2½ years (December 2009). The next RBA Board meeting is on August 5 2012. The Reserve Bank leaves the door open for further cuts. “At today’s meeting, the Board judged that, [...]

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The year that was – 2011/2012

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The Australian sharemarket fell by 11.1 per cent with total returns down 7.0 per cent. But bond returns rose 14.6 per cent – the best gains in 15 years. Telecommunications & technology rose, resources fell. But the year ended with a bang on hopes that the European debt crisis was finally settling. The Year in [...]

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Cash is still king

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Australian companies are continuing to hold more money in liquid cash and deposits than ever before. Just under half of financial assets at private sector companies are held in cash or deposits, while households are holding just over a quarter of their assets in cash and deposits. The high level of liquid assets is both [...]

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Hopes for a lift in Aussie spending

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A measure of economy-wide spending posted solid growth in seasonally adjusted terms in May, raising hopes that rate cuts may lift activity in the retail sector. The Commonwealth Bank Business Sales Indicator (BSI) rose by 1.9 per cent in seasonally adjusted terms in May, more than reversing a 1.3 per cent fall in April. But [...]

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Europe the driver behind “finely balanced” rate cut

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The decision to follow up the half a per cent rate cut in May with another quarter of a per cent cut in June was not as clear cut as markets previously thought. The latest Reserve Bank Board minutes highlights that while the case for a rate cut was compelling, it was a “finely balanced” [...]

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Biggest job gains in 18 months

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Over the three months to May, employment across Australia rose by 60,400 – the best quarterly jobs growth since the three months to November 2010. What does it all mean? The detailed labour market data has added further weight to the underlying strength in labour demand. Over 60,000 jobs were created in the three months [...]

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