Australian Economy

Anyone reading the weekend papers cannot have missed the great coal whinge that was led by The Australian: THE world’s biggest miners have united in sounding the alarm that Australia’s $60 billion coal sector is under extreme pressure, with global giant Rio Tinto warning the industry is “staring down the barrel”.

From Westpac: ― The Westpac–Melbourne Institute Index of Consumer Sentiment edged up 0.3% in Apr from 99.5 in Mar to 99.7.

Cross-posted from The Conversation Governments seem to be enamoured with financial markets, judging by the support they give them around the world to encourage their growth.

By Leith van Onselen The Australian Bureau of Statistics has released Lending Finance data for the month of February, which registered a seasonally-adjusted 0.7% fall in total finance commitments, with the 2.5% fall in commercial finance loans more than offsetting rises in the other broad components.

Excerpted from Renai LeMay at Delimiter.

David Uren today captures the premature jobs celebration that has taken hold of the nation’s more flighty analysts: STRONG jobs growth has raised hopes that unemployment has passed its peak and puts pressure on Treasury to revise up pessimistic growth assumptions behind next month’s budget.

From Callam Pickering at Business Spectator: Month after month, the market incorrectly assesses the labour market because they focus on the wrong data.

Weeoo, weeoo, weeoo.

Cross-posted from The Conversation One of the major recommendations made by the 1997 Wallis Inquiry into banking was to establish a prudential regulator for the financial sector separate from the Reserve Bank of Australia.

By Leith van Onselen As summarised earlier, the Australian Bureau of Statistics (ABS) today released labour force data for the month of March, which registered a 0.2% decrease in the headline unemployment rate to 5.8%.

The Australian Bureau of Statistics has just released its Labour Force survey for March and the result is another consensus buster, which was expecting 2,500 jobs and got: Employment increased 18,100 to 11,553,200. Full-time employment decreased 22,100 to 8,029,100 and part-time employment increased 40,200 to 3,524,000. Unemployment decreased 29,900 (4.0%) to 713,200.

Fresh from Westpac: Trimmed mean consumer inflationary expectations is rising again, 2.4%yr in Apr from 2.1%yr in Mar, from a 2.3%yr print in Feb and Jan.

By Leith van Onselen Former senior public servant, Gary Sturgess, has raised concern today about the declining role of the public service, whose influence has been eroded, leading to a raft of poor policy outcomes.

The rampant Australian dollar took out 94 cents (well, 93.97!) last night as the Fed minutes hosed the hawks: In their discussion of monetary policy going forward, participants focused primarily on possible changes to the Committee’s forward guidance for the federal funds rate.

The Department of Employment has today released its Monthly Leading Indicator of Employment, which registered a 0.064pt fall in April – the sixth consecutive monthly fall (see next chart).

Here’s the Kouk yesterday: The favourable news on the economy is unrelenting.

Just so you’re in no doubt about the absurdity of Australia current macro economic settings, here is what happens when you privilege housing speculation over a competitive economy.

Fresh from Westpac: • The Westpac Melbourne Institute Index of Consumer Sentiment increased by 0.3% in April from 99.5 in March to 99.7 in April… This flat result is a mild surprise.

The IMF released its World Economic Outlook (WEO) and forecast that as the global healing goes on, Australia will be left behind.

By Leith van Onselen Earlier this year, Foxtel stitched-up a deal for exclusive rights to Game of Thrones and True Detectives.