Bumper crop despite floods; Construction slumps

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ABARE Crop Report; Performance of Construction The Government’s commodity forecaster has lifted its crop forecasts. ABARES has lifted its forecast for the 2010/11 winter crop by 6.2 per cent. Despite dry conditions in the west and floods in the east, ABARES tips a record wheat crop with production up 22 per cent on a year […]

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Reserve Bank more relaxed about the road ahead

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Reserve Bank Board meeting The Reserve Bank Board has left the cash rate at 4.75 per cent at its final meeting for 2010. The next meeting is on February 1 2011. The Reserve Bank Board notes that lending rates are now a little above average and believes that this tight policy is “appropriate for the […]

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Petrol pain ahead; Tame inflation; Job ads slow

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Weekly Petrol Price, Inflation gauge; Job Advertisements Motorists need to prepare for higher petrol prices. The terminal gate or wholesale price of petrol leapt by over 3 cents a litre last week to 5-month highs. In addition the Singapore gasoline price soared 7 per cent last week to 25-month highs. CommSec expects petrol prices to […]

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Migrant numbers hit 4yr low despite tight job market

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Latest economic indicators The job market is tight but permanent settler numbers have plunged. Net permanent and long-term arrivals to Australia hit 4-year lows in the year to October. In October alone, the number of permanent settlers in Australia plunged to 6½ year lows. Businesses are crying out for staff but the Government is failing […]

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Depressed services sector; 4WD sales soar

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Latest economic data The services sector is going backwards. The Performance of Services index fell from 50.7 to 46.2 in November. Any reading below 50 suggests that the services sector is contracting. The services sector has contacted in nine of the past 11 months in 2010. New vehicles sales rose in November. There were 87,342 […]

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Weekly market & economic update – 03 December 2010

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Headline developments of the past week Better than expected economic data in the US, Europe and China along with the European Central Bank moving to extend its liquidity boosting measures and to buy more bonds in troubled countries, saw investor appetite for risk return big time resulting in big gains in share markets and commodity […]

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Spending slumps; Trade surplus with China soars

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Retail trade, International trade Retail spending slumped by 1.1 per cent in October, below forecasts centred on a rise of 0.4 per cent. Nonfood retailing fell by a much larger 2.2 per cent – the biggest slide in 20 months. Over the first ten months of 2010 overall retail spending has risen by just 1.5 […]

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Investor Signposts Week Beginning December 5 2010

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The big picture Most people tend to regard the national accounts as just an update on economic growth. But the publication is far more comprehensive than that, covering indicators such as inflation, productivity, savings and wage costs. So from a big picture perspective what can we conclude? Well if we were to sum the economy […]

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Record economic expansion moves into 20th year

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National accounts The current economic expansion began in the September quarter of 1991. The 19th year of the expansion was completed in the June quarter 2010 and the 20th year of growth has begun with the Australian economy expanding by 0.2 per cent in the September quarter. While growth was only modest in the latest […]

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Puritan Australia? Alcohol and gambling shunned

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Consumer spending trends Aussie consumers are making fewer trips in the car but travelling more on planes and trains. And while we are spending more on little luxuries like shoes, sheets, pillows and sporting goods, we are cutting back on the so-called ‘sinful’ pleasures of gambling, alcohol and cigarettes. Welcome to New Australia. The record […]

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