Australian Economy

The national construction industry continued to decline in April, at a rate of contraction that was broadly unchanged from the previous month. The seasonally adjusted Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) registered 45.9 points in April, just 0.3 points below the reading in March.

From the OECD overnight: Output is projected to increase by 2½ per cent in 2014 and by nearly 3% in 2015, with a general pick-up in demand offsetting declining investment in the resource sector.

By Leith van Onselen I reported last week how it looked as if Victoria could approve ridesharing in Victoria, provided “drivers were properly licensed and had been through checks”.

Cross-posted from DFABlog.

By Leith van Onselen The Australian Bureau of Statistics (ABS) has released trade data for the month of March, with Australia recording a seasonally-adjusted trade surplus of $731 million.

By Leith van Onselen The ANZ-Roy Morgan Research (RMR) consumer confidence index has been released for the week ended 4 May, which registered another big fall, tanking 4.7 points (-4.2%) to 106.3 points – the lowest level in five years and well below its long-term average (113.0).

From NAB comes its online retail sales index for March, which showed a small rebound from February’s slowdown: In the year to March 2014, Australians spent $15.2 billion on online retail.

The D&B Business Expectations index is strong again, but that’s the problem, such results usually mark turning points down, not up.

By Leith van Onselen The Abbott Government looks set to bow to media industry pressure and implement laws to curb copyright infringement.

Westpac has produced a more detailed take on today’s TD Securities monthly inflation number: The Gauge rose 0.4% in Apr following a 0.2% rise in Mar and Feb and a 0.1% rise in Jan.

The run of better employment data continues today with ANZ job ads for April out and showing a solid 2.2% rise for the month and 1.5% year on year.

TD Securities monthly inflation data is out and has jumped to 0.4% from 0.2% last month.

Steve Keen has joined the Modern Monetary Theorists today in asking whether or not we need a surplus at Business Spectator: …the correct analogy for the government is not that it is like a business (or like a household), but that it is like a bank.

The second the AIG PMIs is out this morning and is another fizzer: The sales sub-index in the Australian PSI® fell sharply again in April, dropping by 5.1 points to 44.6 points, the lowest reading since August 2013 and slightly below its 12-month average.

Cross-posted from The Conversation.

It is one of those unfortunate elements of Australiana that our subaltern mindset leads us to adopt the habits of our great and powerful friends.

By Leith van Onselen I wrote yesterday how the New South Wales Government had seemingly capitulated to the taxi cartel and banned ridesharing applications that could significantly undercut traditional taxi fares and provide consumers with greater transport options.

The MSM is a little excited about this today.

Not that anyone cares, but the local manufacturing PMI is out and has tanked into deep recession again: The latest Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI®) fell sharply in April, dropping by 3.1 points to 44.8 points (seasonally adjusted).

By Leith van Onselen I wrote last week how Uber was taking the fight to Australia’s taxi cartel by expanding its offering in Australia, offering a ridesharing option that would significantly undercut traditional taxi fares and provide consumers with greater transport options.

The Committee for Economic Development of Australia (CEDA) has released a new report today on how to fix Australian manufacturing.

I’m not one to jump on the band wagon of the confidence fairy champions.