Retail Spending Growth To Slow In Q1

Retail spending is expected to slow during the first few months of 2015 after the strong Christmas trading period. The Australian Food & Grocery Council-CHEP retail index was just 2.4 per cent higher for the March quarter compared to a year earlier, almost half the 4.4 per cent rate in the previous three months. The council’s chief executive Gary Dawson said while a lower Australian dollar has been positive for food and grocery exporters, the domestic market remains tough for manufacturers. This is due to below average consumer sentiment...

Read More

Private Sector Credit Rises 0.5% In Dec

The value of loans outstanding to the private sector grew in December, but personal credit has continued to flatline, data out of the Reserve Bank of Australia shows. The central bank’s financial aggregates for December show total credit increased by 0.5 per cent, after increasing by the same amount in November. In the 12 months to December total credit growth came in at 5.9 per cent, increasing on the 3.8 per cent rise in the previous year. But personal credit was absolutely flat in December — after posting the same flatline result in November. Business...

Read More

Homeowner Confidence Soars To Record

Australia’s flourishing housing market has got some people feeling more confident about their finances – especially tradies and those that have paid off their mortgages. Soaring house prices have propelled confidence to a record high for those that own their homes outright, a survey released on Thursday shows. The survey, which measures how people feel about their own financial situation, also found confidence among tradies had skyrocketed, probably because of better job prospects thanks to the housing construction boom that’s underway. Financial...

Read More

Business Finance Hits 13 Month Low

Despite the continued presence of record low-interest rates, personal and business finance both fell in November, according to official data from the Australian Bureau of Statistics. The data showed total business finance commitments fell a seasonally adjusted 2.6 per cent in the month to $37.992bn — its lowest point for 13 months. The figure compares to a downwardly revised $39.011bn in October. Personal lending commitments slipped a seasonally adjusted 2.2 per cent to $8.730 billion in the month. The result compares to an downwardly...

Read More

Aussie Landlords Swallow Losses To Bet On Price Gains

Australian real estate investor Maureen Pound said losing money on three rental apartments she owns in Melbourne and Brisbane doesn’t concern her. She’s putting her faith in future profits from rising property values. “I might lose $30,000 on a property over 10 years, but the property has gone up $200,000,” said Pound, a 46-year-old business management consultant who lives in Melbourne. Pound is one of more than a million Australian landlords who must cover the difference between their mortgage payments and rental income. Their bet on...

Read More

Penalty Rates And Their Role In Australia’s Cash Economy

Amid the ongoing debate over the future of penalty rates, a subtle but important issue also deserves to be examined: their impact on Australia’s “cash economy”. The Fair Work Commission is currently reviewing minimum wage conditions across more than 200 awards, while the Productivity Commission is also reviewing penalty rates as part of a review of workplace relations. But as well as scrutinising low-paid workers payment entitlements, employer behaviours and attitudes should also be in the spotlight – particularly where exploitation...

Read More