Tag: Rba

Australia’s construction industry continues to contract, with the latest AiG/HIA Australian Performance of Construction index at 43.2 for the month of August.

The performance of the Australian services sector continues to be uninspiring, with political uncertainty surrounding Australia’s hung parliament impacting on demand in August.

New home sales in Australia dived 7 percent to an 18 month low in July according to the latest Housing Industry Association report into new home sales, triggering calls for federal government action to save the sector.

Wages only increased by 0.8 percent in the June quarter according to the latest data from the ABS, reducing pressure on the Reserve Bank of Australia to increase rates at its September board meeting.

Australia’s services sector continues to contract as the Federal Government’s fiscal stimulus dries up and the Reserve Bank’s interest rate increases impact the services sector.

New home sales slumped to a 17 month low in June, adding further weight to the case for the Reserve Bank of Australia keeping interest rates on hold at their board meeting tomorrow.

Julia Gillard has little to fear when the Reserve Bank of Australia Board meets in August, with a mid-campaign interest rate increase possible, but unlikely according to the minutes of the last RBA Board meeting.

Economists believe that yesterday’s positive ABS labour force data has increased the possibility that the RBA will look to tighten monetary policy as near full employment triggers inflation pressures.

The Reserve Bank of Australia has decided in it’s monthly board meeting today to leave interest rates on hold at 4.5 percent as it waits on second quarter inflation data from the ABS.

The services sector continues to contract, with a fall in new orders and decreasing selling prices keeping the services sector in negative territory in the June Performance of Services Index.