Capital city home prices fell by 0.2 per cent in seasonally adjusted terms in March after a downwardly revised 0.5 per cent slide in February, according to the RP Data-Rismark Hedonic Australian Home Value Index – the largest property database in Australia. Outside capital cities, prices rose by 0.2 per cent in March.

Capital city home prices fell by 2.1 per cent over the first three months of the year – marking the largest quarterly slide in property prices on record. Prices in the ‘Rest of State’ markets were down 0.5 per cent in annualised terms.

Prices rose in just two of the seven capital cities in March with Darwin prices up 1.1 per cent, followed by Melbourne up 0.6 per cent. Prices fell most in Perth (down 1.9 per cent), Brisbane (down 1.4 per cent), followed by Adelaide (down 0.7 per cent). Sydney prices were unchanged in March.

Private sector credit rose by 0.6 per cent in March to stand 3.6 per cent higher than a year ago. Housing credit grew by 6.6 per cent in annual terms marking the weakest annual growth rate in records going back 34 years.

What does it all mean?

What do the figures show?

What is the importance of the economic data?

What are the implications for interest rates and investors?

The post CommSec: Record quarterly fall in home prices appeared first on AdviserVoice.

• Construction work done fell from record highs, down by 2.1 per cent in the September quarter. In real terms the value of construction work done fell to $41.4 billion in the September quarter.
• Residential building slumped by 6.1 per cent in the quarter– marking the biggest quarterly fall in nearly a decade. Private sector work fell by down 5.9 per cent CommSec estimates the slide in residential building will detract 0.2-0.3 percentage points to September quarter GDP growth
• The longer term outlook for commercial and residential construction is still positive. Construction work yet to be done stood at $42.4 billion in the September quarter, down a modest 6.0 per cent from the record highs reached in the March quarter.
• CommSec estimates that overall construction costs rose by 0.7 per cent in the September quarter – marking the biggest rise in two years. In annual terms, construction costs are now up 1.4 per cent on a
  year ago.

Click here to download this document (pdf)

The post Biggest housing slump in a decade appeared first on AdviserVoice.

• At the last Reserve Bank board meeting members took some time to consider bank funding costs. Members explicitly stated that there was a possibility that banks would increase interest rates on loans by more than the cash rate due to funding cost pressures.
• “Members noted that lending rates might increase by more than the cash rate, but this tendency would not be lessened by delaying a change in the cash rate. Lending rates had been rising relative to the cash rate since the global financial crisis, and the Board had taken this into account in setting the cash rate.”
• The decision to lift interest rates in November was clearly touch and go. Consumer spending was soft, housing had turned down, business conditions were mixed and inflation was under control. But the Reserve Bank judged that economic conditions were more likely to improve with inflation trending higher, justifying a pre-emptive rate hike.
• The Reserve Bank has explicitly noted that the higher rates by banks will be taken into account in future rate decisions, suggesting that rates are now on hold until February 2011.

What does it all mean?

• The latest Reserve Bank board minutes reveal that the decision to lift interest rates was certainly not taken lightly. Rather the result was finely balanced given the soft near term conditions in consumer spending, business investment and housing activity. Most of the discussion in the latest board minutes has unsurprisingly portrayed a similar view to the Statement on Monetary Policy, which was released a few days after the last board meeting, however the dialogue on banking funding costs was certainly revealing.
• Board members discussed the pressure on bank funding costs, highlighting that there was a case for banks to lift interest rates on mortgages by more than the cash rate. And interestingly board members came to the conclusion that had interest rates remained on hold it was unlikely to alter the fact that funding pressures remained an ongoing issue for the banks.
• Federal politicians would do well to read the Reserve Bank comments on bank funding costs. The Reserve Bank explicitly states that there was a case for banks to lift rates by more than the cash rate. The Treasurer must now explain whether the Government fundamentally disagrees with the Reserve Bank.
• The minutes suggest that board members were if anything a touch optimistic about the global recovery that was taking place. And more encouragingly the central bank had become more comfortable with the Chinese growth story. Members noted that downside risks to China were diminishing and a further degree of uncertainty had been removed from the global economy. The robust growth in the Asian region strength in commodity prices, will continue to boost Australia’s term of trade and in turn strength growth and activity in the mid-term – essentially highlighting the reason why the Reserve Bank decided to raise interest rate in a pre-emptive strike against future inflation.
• On the domestic front Board members were conscious that the domestic economy was already responding to the previous interest rate hikes. There were clear signs that the demand in the housing market was showing signs of easing, with house prices tracking sideways. CommSec expects further consolidation in the housing sector given the sharp slide in housing finance over the past year and the expected increase in the supply of new homes in coming months.
• In terms of the Australian dollar the central bank is well aware that the Australian dollar is effectively acting as a quasi rate hike – curbing exports receipts, while slowing manufacturing activity and having a detrimental impact Economic Insights RBA highlights pressure on bank funding on the tourism sector. Encouragingly the strength of the Aussie will support the Reserve Bank’s efforts in keeping
  inflation low.
• Looking forward the limited spare capacity in the labour market, and the resulting growth in wages will be central to the trajectory of rate hikes over the coming year – especially given that the domestic recovery is only in its infancy. In recent times wage growth had remained solid and while it has not had a major impact on the inflationary front it is likely to be an area that the Reserve Bank monitors closely over the coming year. CommSec would expect labour shortages are likely to become more prominent over the coming year.
• All in all the latest minutes highlights that the latest rate hike has provided the Reserve Bank a degree of flexibility on the interest rate front. And while the near term domestic data looks patchy the Reserve Bank remains confident about the outlook.
• Looking forward, CommSec believes that a pause at the next board meeting would be the best outcome. And the latest minutes suggest the Reserve Bank is comfortable with the current interest rate settings. It is clear that the Reserve Bank is unlikely to move on interest rates until more robust economic data is available.

What do the figures show?

Minutes from the November 2010 Reserve Bank Board meeting

Consumer spending & housing

• While liaison and recent data on retail trade provided a picture of varied conditions across the different segments of the retail market, they mostly suggested that consumers were still cautious in their spending and that discounting was extensive.
• In the housing market, conditions had softened relative to earlier in the year, with national housing prices broadly flat over recent months. Auction clearance rates remained around long-run average levels. Loan approvals had drifted down over the course of the year and growth in housing credit had been moderate over recent months. Other forms of household credit had been flat recently and liaison with retailers had noted a pick-up in cash payments relative to credit cards.

Mixed business conditions

• Business conditions remained generally favourable, although there were clear differences across sectors and regions. Indicators of investment intentions were mostly positive, particularly for the resources sector, where the pipeline of work to be done was large.

Bank funding costs

• Domestically, the most recent data showed a continuation of the trends in bank funding that had been apparent for some time. The shares of relatively high cost funds, such as domestic deposits and long-term debt, had continued to rise, while the share of short-term debt had continued to fall. Members were briefed on developments in funding costs. Most banks had reported a small reduction in net interest margins in their most recent half-yearly accounts, though some had experienced an increase. Deposit competition appeared to have levelled off in recent months. In debt markets, spreads on short-term bank bills had narrowed to be not far above pre-crisis levels. Spreads on longer-term bank debt had stabilised at levels that were significantly higher than before the crisis. This was slowly adding to the banks’ cost of funds as banks rolled over debt issued earlier at lower spreads. Members noted that there was a possibility that banks would increase interest rates on loans by more than any move in the cash rate.

Domestic Economy & inflation

• Overall, members considered that developments in terms of activity and inflation were broadly consistent with the central scenario the Bank had envisaged for some months. The outlook for growth in the resources sector was very strong and GDP growth was expected to rise gradually. While inflation had moderated, it was likely that the decline was now largely complete; inflation was expected to remain around the current level for several quarters, but was likely to move higher thereafter.

Finely balanced decision

• As in October, a case could be made for waiting a little longer: the expected pick-up in domestic growth would be only in its early stages; the latest CPI outcome had been relatively good; and credit growth and housing prices were subdued. In addition, the exchange rate had appreciated over the past month, and quite significantly over a longer period, which would dampen inflation pressures somewhat. There might also be a case for waiting to see if the Federal Reserve’s upcoming announcement had a significant further effect on the exchange rate.
• On the other hand, some of the uncertainties that had been a reason to keep interest rates steady over the past few months had lessened recently, even though they had not dissipated completely. Compared with several months ago, downside risks to the global economy had still not materialised in any significant way. Indeed, the uncertainty regarding the outlook for the Chinese economy had lessened, commodity markets had strengthened and the outlook for investment had firmed. With only a relatively modest amount of spare capacity in the economy, a gradual upward trend in inflation remained likely over the medium term. If monetary policy was to be conducted in a forward-looking way, these developments meant there was a case for increasing interest rates at the current meeting.

The decision

• Members considered that the arguments were finely balanced. However, with the flow of information over the past month generally suggesting that the medium-term economic outlook remained one of strengthening economic activity and gradually rising inflation, the Board judged that the balance of risks had shifted to the point where a modest tightening of monetary policy was prudent. Members noted that lending rates might increase by more than the cash rate, but this tendency would not be lessened by delaying a change in the cash rate. Lending rates had been rising relative to the cash rate since the global financial crisis, and the Board had taken this into account in setting the cash rate. It would continue to take account of any changes in margins in its decisions in the period ahead.

What is the importance of the economic data?

• The Reserve Bank releases minutes of its monthly Board meeting a fortnight after the event. The minutes give a guide to Reserve Bank thinking on interest rate settings.

What are the implications for interest rates and investors?

• Board members are cautiously optimistic on the recovery in the global economy, highlighting that downside risks are diminishing. However the recent interest rate hike is likely to result in a softer domestic economy in the near term. The latest rate hike has given the central bank a degree of flexibility in future interest rate decisions and as such CommSec expects interest rates to remain on hold well into the New Year.

The post RBA highlights pressure on bank funding appeared first on AdviserVoice.

• Minutes of the last Reserve Bank Board meeting echo’s the sentiments of the Governors speech yesterday and adds further weight to the likelihood of an interest rate hike.
• Board members remained quite comfortable with current interest rate settings, however “observed that previous investment booms and increases in the terms of trade had posed significant challenges for economic policy and that high levels of resource utilisation was likely to put pressure on inflation”.
• The Australian Government’s chief commodity forecaster, ABARE, expects commodity export receipts to rise by 26 per cent in 2010/11 to a record $215 billion in 2010/11. The surge in exports can be largely attributed to the higher coal and iron ore volumes. The latest forecast on commodity exports is 6.1 per cent higher than the estimate made three months ago.
• Australians are travelling more, especially on key business routes like Melbourne-Sydney, and the key message is to shop around for the best deals because airfares are creeping higher. All but discount airfares are now higher than a year ago according to latest data from the Bureau of Infrastructure, Transport and Regional Economics.

Click here to download the document (pdf)

The post RBA sets the scene for a rate hike appeared first on AdviserVoice.

Australia

September 20    Reserve Bank Governor speech    Foodbowl Unlimited Forum Luncheon in Shepparton

September 21    RBA Board minutes (September 7)    Minutes of the last board meeting

September 21    ABARE commodity forecasts      ABARE’s ‘Australian Commodities’ publication

September 24    Financial accounts (September quarter)    Includes data on household financial wealth

Overseas

September 21    US Housing starts (August)                 Recovery will remain modest given high inventories

September 21    US Federal Reserve rates decision     No change in rates, with the focus on the wording of the statement

September 23    US Leading index (August)                 A modest 0.1pct increase is expected

September 23    US Existing home sales (August)       Economists tip a 7pct rebound after the 27.2pct slump in July

September 24    US Durable goods orders (August)    Orders are consolidating after lifting 10pct over the year

September 24    US New home sales (August)              New home sales hit record lows in July

The big picture

• Is there one particular theme or issue that dominates the radar screen? Unfortunately it is never that easy. There are always a few balls in the air and that is certainly the case at present.
• Probably the biggest issue is whether the US economy is headed for a double-dip downturn. Everyone seems to have their views on the topic, including renowned investor Warren Buffett. At present all the economic data indicates that the US is merely consolidating after a ‘V-shaped’ recovery in late 2009/early 2010. But clearly the issue is a watching brief given that unemployment is still high and the housing market remains over-supplied with stock.
• Certainly the issue of a ‘double-dip’ will be in focus in the coming week with the US Federal Reserve policy- making committee to assess the state of the economy and determine if more stimulus is required. Some analysts are betting on more ‘quantitative easing’ – buying government bonds to inject cash in the economy – and that speculation is putting downward pressure on the US dollar.
• A weaker greenback is good news for the US economy, serving to stimulate the export sector. And a weaker US dollar also tends to lead to higher commodity prices as it improves purchasing power for European and Asian buyers. But the opposite side of the equation – strength in other currencies – may pose problems for other countries. The Aussie dollar has certainly soared over the past week, putting pressure on tourism, exporters and manufacturers.
• There are also a number of other issues to watch. One is that listed companies are paying more attention to dividends. In the latest profit-reporting season in Australia, CommSec calculated that 83 per cent of companies paid a dividend with 40 per cent lifting dividends compared with a year ago. Companies have high cash reserves at present, and if they remain reluctant to put them to work, there may be more recourse to issuing share buy- backs, lifting dividends or paying special dividends. In the US, Cisco Systems will pay a dividend for the first time and Microsoft has announced that it will borrow to fund a higher dividend payment.
• And one other event to keep a watch on is the US mid-term elections, held on November 2. Analysts believe that this could actually be good for stocks, calculating that the S&P 500 has risen on average by 13 per cent during the year after mid-term elections. And if gridlock eventuates this could be even more positive for stocks. Gridlock is where one party has control of the White House and another has control of Congress, creating the risk that little in the way of new legislation gets advanced.

The week ahead

• A quiet week is in prospect on the Australian economic calendar with housing data to dominate in the US. In addition the US Federal Reserve holds its latest interest rate setting meeting with the jury still out on prospects for a double-dip recession.
• In Australia, the Reserve Bank Governor is scheduled to deliver a speech on Monday with minutes of the last Reserve Bank Board meeting to be released on Tuesday. Also on Tuesday, the Government’s main commodity forecaster, ABARE, will release its quarterly Australian Commodities publication containing the latest commodity price forecasts. And on Friday the Financial Accounts will be released.
• Whenever the Reserve Bank Governor speaks, investors and analysts stand to attention. But few are expecting any hints on interest rate settings. The Reserve Bank will probably wait until the next inflation data at the end of October before deciding its next move. Certainly domestic economic data remains very patchy and the same can be said for the global environment with China in strong shape, the US stagnating and European countries taking different growth paths.
• The Reserve Bank Board minutes will probably come to the same conclusions and the commentary is unlikely to signal any urgency in changing the stance of policy.
• The commodity price forecasts will be keenly awaited by those investors focussed on prospects for the resources sector. But the Government will also be a keen observer as each time ABARE changes its forecasts, it seems to trigger changes in the expected tax take of the proposed mineral resource rent tax.
• The data release of note in the coming week is the Financial Accounts. This publication will reveal statistics like the cash holdings of superannuation funds, the proportion of listed shares held by foreigners and the financial wealth held by Aussie households.
• In the US, the focus is squarely on the health of the housing sector, although we use the term ‘health’ quite lightly. The latest housing starts data is released on Tuesday with existing home sales on Thursday and new home sales figures are slated for release on Friday.
• Apart from the housing market data, the Federal Reserve hands down its interest rate decision on Tuesday with the leading index slated for release on Thursday and durable goods orders on Friday.
• Overall economists expect slightly more positive results for the housing market in August after dreadful results in July. Admittedly the home buyer tax credit adversely affected these July figures, but it is clear that housing activity remains depressed.
• Housing starts probably lifted 1.5 per cent in August. Interestingly, with inventories already so high, a bigger lift in starts may appear encouraging but it wouldn’t be sustainable. In addition, existing home sales are tipped to have risen by over 7 per cent in the month, but this follows a fall of over 27 per cent in July. And new homes sales are expected to have lifted 7.5 per cent from record lows.
• The Federal Reserve meeting should prove an interesting event given the mixed views that currently exist. But the Fed is unlikely to be in a rush to inject any more stimuli into the economy. The best thing it can do is to leave current policy settings in place and focus on the positive aspects of the economic recovery.

Sharemarket

• You could hardly call the Australian sharemarket “cheap” at present. Currently the historic price-earnings ratio (PE ratio) stands at 15.95, above the long-term average of around 15.00. Going back a year ago after the profit- reporting season, the PE ratio hovered in the 13-14 range. It was in a similar range after the earnings season in 2007. And in the intervening year of 2008, the sharemarket was even cheaper with a PE ratio of 10-11 times – admittedly it became even cheaper as investors were focussed on the earnings outlook rather than history.
• With the PE ratio slightly above average at present and companies reluctant to provide guidance on earnings, the Aussie sharemarket will continue to find it hard to make forward progress in the short term. What is needed is a more upbeat view on recoveries in the US and Europe. Our end year forecast for the ASX 200 remains at 4800.

Interest rates, currencies & commodities

• There is currently a lot of focus on the Aussie dollar, but how strong is it really? CommSec has assessed 120 currencies and found that the Aussie is the 13th strongest against the greenback since the start of the year. The Colombian peso is on top with gains of 12 per cent, followed by the Malaysian ringgit (up 9.5 per cent) and Japanese yen (up 9 per cent). The Aussie dollar has actually made modest gains of around 4 per cent since the start of the year. At the other end of the spectrum, African and eastern European currencies have recorded the biggest losses against the US dollar over 2010, but the Euro is also one of the biggest losers, down 12 per cent.
• Australian motorists are certainly one of the beneficiaries of the high-flying Aussie dollar. Not only has the Aussie lifted from US88 cents to US 94 cents in recently weeks, but the oil price has retreated over the past month or so from just above US$80 a barrel. As a result, the average retail price of petrol has fallen to an 11-month low with motorists saving around $17 a month compared with three months ago.

The post Investor Signposts: Week Beginning September 19 appeared first on AdviserVoice.

Headline developments of the past week

• Global financial market regulators – known as the Basel Committee on Banking Supervision – announced tougher capital requirements for banks so that they can better withstand future financial crises. However, bank shares actually rose in response as the capital requirements had been anticipated and the time to comply was longer than expected. Australian banks appear to be well placed to meet the new requirements and if anything are likely to be overcapitalised.
• The Bank of Japan intervened in currency markets to sell Yen for the first time in six years. Whether the intervention will have a lasting effect remains to be seen, but its now clear that the Yen had risen beyond the Japanese Government’s tolerance level, given the damage its rise has been causing the Japanese economy.
• Increasing talk of additional quantitative easing in the US, or QE2 as it has become known, saw the US dollar under downwards pressure with the gold price pushed to a new record high as a result and the Australian dollar rising to its highest level since July 2008. More US quantitative easing will increase the supply of US dollars and so is negative for the currency. Gold and the Australian dollar are likely to be ongoing beneficiaries – although there may be a few bumps along the way because it may still be several months before the Fed actually starts QE2.
• The message from central banks was mixed with central banks in New Zealand and Switzerland leaving interest rates on hold on the back of dovish comments about the outlook, but the Reserve Bank of India raising its key interest rates by 0.25% and 0.5% on the back of high inflation and a solid outlook. Reserve Bank of Australia Assistant Governor Philip Lowe delivered a relatively upbeat speech on the outlook for Asia and Australia, but his warnings about Australia’s lack of spare capacity, inflation risk and the need for consumers to exercise restraint, served to highlight the RBA’s inclination to raise interest rates further.

Major global economic releases and implications

• US economic data was a little bit better than expected. Retail sales rose more than expected in August, industrial production continues to rise albeit slowly, the New York and Philadelphia manufacturing conditions surveys were a little bit stronger than the weak readings seen in August, initial unemployment claims unexpectedly fell and while weekly mortgage applications fell marginally this followed a very strong gain the previous week and they are now up by 12.5% since mid July, suggesting the housing sector may have found a floor after its post first time buyer tax credit slump. Small business confidence improved, but only modestly.
• European data was soft with flat industrial production in July and flat employment in the June quarter.
• Japanese data was mixed with a private sector survey highlighting a sharp deterioration in the outlook on the back of the strong Yen, but a strong improvement in tertiary sector activity in July.
• After last week’s round of stronger than expected August economic data in China, a Chinese leading economic index rose solidly in July adding to the picture that China is on track for a soft landing. Meanwhile China has relented to intensifying US pressure to let the Renminbi appreciate more quickly. More gains are likely, but only taking it up by around 5% over the next 12 months.

Australian economic releases and implications

• Australian economic data was mixed but remains consistent with solid growth. The NAB business survey for August reported a marginal easing in business conditions but a rebound in business confidence. Consumer confidence slipped 5% in September reversing a similar rise the previous month, but it remains very high consistent with reasonable growth in consumer spending. Dwelling commencements rose by less than expected in the June quarter but the previous quarter was revised up strongly. Finally, skilled vacancies and car sales rose.
• The chart that follows, based on data from the Westpac-Melbourne Institute’s survey of consumer confidence, shows that Australian’s remain very cautious in their savings habits. In September 51.7% still regarded paying down debt or saving in bank deposits as the wisest place for savings whereas only 11.5% regarded shares as the wisest place of savings. Quite clearly the effect of the 2007-09 bear market and continuing share market volatility are continuing to weigh on investor confidence. The flipside of course is that the lack of confidence in shares is potentially positive for the share market going forward because it means that there is a lot of money sitting on the sidelines, which can come into the market once confidence improves.

Major market moves

• Share markets generally rose over the last week on somewhat better than expected economic data and Japanese shares being helped by moves to depress the Yen. Australian shares also moved higher.
• Whereas the $US rose against the Yen, it fell against other currencies on the back of expectations for quantitative easing and improving risk appetites. This saw the $A rise to a two year high before slipping back.
• While oil prices fell, gold and base metal prices rose solidly.

What to watch in the week ahead?

• In the US, August data for housing starts, permits to build new homes, house sales and a survey of home builders are likely to show signs of stabilisation after the slump caused by the ending of the first home buyers tax credit earlier this year. House prices are still likely to be under downwards pressure though. Durable goods orders are likely to show that the recovery in capital spending is continuing, albeit at a slower pace. The US Federal Reserve is expected to leave interest rates on hold and indicate that it will embark on more quantitative easing (QE2) if conditions warrant it. However, with the Fed likely to have revised down its 2011 growth forecasts to below 3% there is an outside chance that it will embark on QE2 immediately.
• In Australia, the focus is likely to be back on interest rates with the minutes from the last RBA Board meeting and a speech by RBA Governor Glenn Stevens likely to be looked at closely for clues as to how strong the RBA’s tightening bias is and when the next rate hike might come. Given the strength in recent Australian and Chinese economic data we expect the Governor to adopt a hawkish stance.

Outlook for markets

• After seven percent or so gains in shares from their August lows, shares are at risk of a correction or consolidation in the short term particularly with US shares up against key technical resistance, double dip worries lingering and September and October being tough months for shares. However, while near term uncertainties remain, shares are likely to see strong gains into year-end and then through 2011. Shares are very cheap relative to government bonds, investors are still very bearish which is positive from a contrarian perspective and once it becomes clear that the US/global recovery is continuing (albeit slowly) there is likely to be a big reversal of investment flows – out of government bonds and back into equities.
• After a six percent gain since late August which has taken it to a two year high, the Australian dollar is due for a consolidation or correction, particularly if share markets see another bout of double dip fears. However, further gains in the value of the $A are likely on a six to 12 month horizon as it becomes clear that the global recovery is continuing, commodity prices are remaining strong and that Australian interest rates are still on the rise and are remaining well above global rates.
• Double dip and deflation worries along with the prospect of more central bank government bond purchases in the US and elsewhere are likely to keep bond yields low in the short term, but medium term returns are likely to be poor reflecting low yields and excessive public debt levels in many developed countries.

The post Weekly market & economic update 17 September 2010 appeared first on AdviserVoice.

Consumer sentiment; New car sales; Dwelling starts

• The Westpac/Melbourne Institute index of consumer confidence eased in the latest month. The index fell by 5.0 per cent to a three-month low of 113.2 in September. Aussie consumers believe that bank deposits are the wisest place for savings (30.7 per cent of respondents), followed by paying debt (21.0 per cent).
• Australian new car sales rose for the first time in four months, up by 0.3 per cent in August after a 2.6 per cent fall in July. Passenger car sales fell for the fourth straight month, down by 0.2 per cent in August.
• Sales of SUV’s eased by 2.1 per cent in August. However over the past year more than 225,000 SUV have been sold – the best result in records going back 16 years.
• Australian dwelling starts have risen for the fourth straight quarter, lifting by 0.8 per cent in the June quarter. The lift in dwelling starts was dominated by the public sector, rising by 3.9 per cent, while private sector starts rose by only 0.4 per cent. In the June quarter, starts rose in only three of the eight states and territories.
• In seasonally adjusted terms work started on 44,899 dwellings in the quarter – the biggest quarterly result in six years

Click here to download the document (pdf)

The post Consumers display caution appeared first on AdviserVoice.

• The Australian Institute of Petroleum reports that the average Australian petrol price fell by 2.2 cents last week. Over the past fortnight prices have fallen by 4.9 cents a litre – the biggest fortnightly fall in 21 months. The national pump price is now holding at a near 11-month low of 119.3 cents a litre.
• Total lending (business, housing, personal and lease loans) rose by 5.2 per cent in July all but reversing the previous months loss. Lending continues to track sideways.
• Loans for construction of dwellings (owner-occupier and investor) fell by $31.8 million to $1.69 billion in July – a 17-month low.
• The average credit card balance stood at a $3,267.70 in July, down $15.30 on June. The average credit card balance is up 5.1 per cent on a year earlier – the fastest annual growth in 29 months.

Click here to download the document (pdf)

The post More joy for motorists; Construction loans slump appeared first on AdviserVoice.