Australian Economy

The Australian Bureau of Statistics (ABS) has released visitor arrivals and departures statistics for the month of May, which reveals that the number of permanent and long-term arrivals into Australia hit another record high.

Chief Lunatic, Philip Lowe, says he is in full agreement with Treasurer Josh Frydenberg’s view that the Australian economy remains sound.

The superannuation guarantee is legislated to increase from 9.5 per cent to 12 per cent between 2021 and 2025, and Treasurer Josh Frydenberg has said that the federal government has no plans to change the legislated increase.

One of the ramifications of Australia having one of the world’s largest household debt loads, which is running at 190% of disposable income: Is that when wage growth is anaemic and an economic downturn hits, it leaves highly indebted households exposed to bankruptcy.

From Roy Morgan Research: In June, Australians expected annual inflation of 3.8% over the next two years as the RBA cut interest rates to a record low 1.25% in the first week of June.

News.com.au has taken a detailed look at the Greater Sydneys Commission’s economic apartheid plans for Sydney: It’s known by various names — all seemingly designed to elicit a chuckle.

From Martin North at Digital Finance Analytics: After the slight twitch of positive sentiment following the election in May, the DFA Household Finance Confidence Index fell again, to a new low of 85.54.

A new report by the Institute of Energy Economics and Financial Analysis (IEEFA) has explained why a domestic gas reservation policy is essential to bring down Australian power prices and save local industry.

Via Damien Boey at Credit Suisse: Consumer confidence came in well below expectations, falling to a 2-year low of 96.5 in early July from 100.7.

From Westpac’s Matthew Hassan: The Westpac-Melbourne Institute Index of Consumer Sentiment fell 4.1% to 96.5 in July from 100.7 in June.

From Westpac’s Andrew Hanlan: The NAB business survey for June revealed that the spike in business confidence in May (post the Federal election and with the RBA set to cut rates) was a one hit wonder.

I missed this release yesterday, so better late than never: ANZ Australian Job Ads bounced back in June after falling more than 8% in May.

From NAB Economics: Overall, the survey results for June continue to suggest that the business sector has lost significant momentum over the past year or so.

The ABS yesterday released its Participation, Job Search and Mobility survey, which reported that long-term underemployment in Australia has increased significantly over the past decade: “Over one million Australians were underemployed in 2019.

From Roy Morgan Research: New research from Roy Morgan shows that with over 4.4 million Australians (21.5% of the population) using Uber in an average three months the popular ride-sharing app is set to overtake the traditional taxi as Australia’s preferred private transportation service during 2019.

by Chris Becker It’s going to take more than a rate cut and a tax cheque from ScoMo to get confidence back.

By Michael Bayliss, communications manager for Sustainable Population Australia and Co-founder of Population, Permaculture and Planning Australia’s economy is centred on the belief that we need Gross Domestic Product (GDP) as a means of measuring prosperity.

The West Australian has today documented the youth labour crisis afflicting Perth: Perth’s youth unemployment crisis is being exacerbated by the collapse of bars, restaurants and retailers across the city.

by Chris Becker While the latest new car sales figure highlighted a systemic underyling economic weakness in Australia, there is a glimmer of hope: electric!

Via The Guardian: Scott Morrison has declared the passage of the government’s $158bn tax cut package through the Senate a victory for “quiet Australians”, after Labor capitulated and joined the Coalition to vote for the 10-year plan.