Despite all the doomsday predictions, the Australian economy is actually in pretty good shape.
According to the Westpac Melbourne Institute consumer sentiment survey, consumer confidence has dropped again due to the slowing housing market and Australian dollar rising. Read more here: Consumer Confidence
However, the recent jobs growth is positive and the underlying employment growth is the good news from business growth throughout the economy.
The NAB’s monthly business survey showed the business conditions index is running nicely above its long-run average – it’s the highest reading since 2008.
NAB believes the non-mining recovery is becoming more broad-based and thinks the Reserve Bank won’t need to cut interest rates again in this cycle. Read more here: NAB Survey
And in February the ABS said lending finance statistics showed commercial lending surging 5.6% seasonally adjusted. The longed-for stirring of small to medium size business may be happening.
The surge in our service industries is continuing with tourism and education growing very strongly. Plus, Australian manufacturing also is stirring. The Australian Industry Group’s performance of manufacturing index indicates a strong expansion of manufacturing activity from February. It’s the highest level in 12 years and makes it nine months of growth in a row.
And with infrastructure being this decade’s star growth driver, New South Wales and Victoria are embarking on a virtuous cycle of investment promoting growth that will allow more investment to enable growth.
So the Australian economy glass is definitely half full.
See the full article here: Michael Pascoe Article