Biggest slide in home building in a decade

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Latest economic data The outlook for home builders is gloomy. Council approvals to build news homes slumped by 6.6 per cent in September. Over the past six months approvals have fallen by 31 per cent – the biggest slide in a decade. It was the sixth straight fall in home approvals and eighth decline in […]

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Reserve Bank takes a punt

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Reserve Bank Board meeting For the first time in six months the Reserve Bank has elected to increase official interest rates, lifting the cash rate by 25 basis points to 4.75 per cent. While inflation is in the middle of the 2-3 per cent target band and economic indicators are decidedly mixed, the Reserve Bank […]

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Tame inflation; Manufacturing orders sink

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Inflation gauge; Weekly Petrol Price, PMI, House Price Index The TD Securities-Melbourne Institute monthly inflation gauge rose by 0.3 per cent in October after lifting 0.1 per cent in September, and 0.2 per cent in August. Importantly other underlying rates of inflation were relatively tame in October. The trimmed mean rose by 0.2 per cent […]

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Weekly market & economic update: 29 October 2010

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Headline developments of the past week US GDP grew an annualised 2% in the September quarter, which was right in line with market expectations. Clearly the US economy has not plunged into the double dip that was much feared a few months ago, but by the same token it is not growing fast enough to […]

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Budget deficit soars to record high

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Federal budget The underlying budget deficit hit a record high of $63.3 billion in the twelve months to September 2010, indicating that the Government has plenty of work to do to reach its forecast deficit of $40.8 billion in nine months time. CommSec estimates that the budget deficit equates to 4.9 per cent of GDP, […]

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Investor Signposts: Week Beginning October 31 2010

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The big picture Here’s a scary thought – 2010 is almost over, with just over two months to go to the end of the year. So it is opportune to see where Australia stands in the global rankings of shares, currencies and interest rates. One of the interesting findings is that the Australian sharemarket is […]

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Global Property Securities Update

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Overview Strong returns by listed property companies during the month were mainly driven by positive momentum in most global equity markets. The prospect of further quantitative easing in the US would be beneficial to property companies. Asset valuations would improve because the lower risk-free rate tends to cause capitalisation rates to have adownward bias. We […]

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The new age of consumer thrift

Key points The GFC has ushered in a period of more cautious consumers in the US and to a lesser extent in Australia. Household savings rates are likely to be higher than over the last decade as households seek to cut debt ratios in the face of reduced credit availability, greater economic uncertainty and constrained […]

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Deflation reigns: Bonanza for consumers

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Consumer Prices There are more goods falling in price currently than at any time over the past decade. In the June quarter 33 items were cheaper than a year ago while 29 items were cheaper in the September quarter. In the September quarter alone, 25 goods were cheaper than in the three previous months. Deflation […]

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Inflation: Another beautiful set of numbers

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Consumer Price Index Australia’s main inflation measure – the consumer price index (CPI) – rose by 0.7 per cent in the September quarter, well below economist forecasts. The annual rate of consumer inflation eased from 3.1 per cent to 2.8 per cent – in other words back inflation is back in the Reserve Bank’s 2-3 […]

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