A review of this week’s economic data, December 4 to December 8.

December 8, 2017

CORELOGIC CAPITAL CITY HOUSE PRICES

Australia’s capital city property markets continued to slow, with prices and auction activity flat in the week to December 3. Home values in Sydney dropped 0.2 per cent, while Perth, Melbourne and Adelaide added 0.1 per cent. Brisbane was flat.

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RESERVE BANK OF AUSTRALIA RATES MEETING AND DECISION

As widely expected, the RBA left the official interest rate at 1.5 per cent for a 16th straight month when it met for the last time in 2017 on Tuesday. The central bank is worried about Australians’ meagre spending habits while pay packets remain stagnant and household debt high.

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ANZ-ROY MORGAN CONSUMER CONFIDENCE WEEKLY SURVEY

Consumer confidence bounced back with a 0.7 per cent rise in the week to December 3, up from a 1.2 per cent fall in the previous week. The modest lift was driven by a jump in sentiment around both current and future economic conditions.

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AUSTRALIAN BUREAU OF STATISTICS RETAIL TRADE

Shoppers splurging on shoes, accessories and eating out drove retail spending growth to a five-month high. All major categories of the retail sector recorded growth in October as total spending hit $26.05 billion, up 0.5 per cent, seasonally adjusted, from September.

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AUSTRALIAN BUREAU OF STATISTICS CURRENT ACCOUNT BALANCE

Australia’s current account deficit narrowed slightly to $9.1 billion in the September quarter, down from a deficit of $9.6 billion the previous three months. The smaller deficit was a result of stronger service exports (up $366 million), and an uptick in income credits that include direct investment assets , income on equity and investment fund shares (up $612 million).

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AUSTRALIAN BUREAU OF STATISTICS NATIONAL ACCOUNTS INCLUDING GDP 

The economy grew 0.6 per cent in the September quarter, taking the annual rate of growth to 2.8 per cent. The expansion is slower than expected, with the weakest consumer spending in nearly 10 years likely to remain a key risk for future growth.

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AUSTRALIAN INDUSTRY GROUP /HIA PERFORMANCE OF CONSTRUCTION INDEX

More house building, a fresh high in engineering work, and a surge in commercial work have helped lift overall construction activity, despite a continuing decline in apartment building. The PCI climbed 4.3 points to 57.5 points in November, the 10th month of expansion in a row.

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AUSTRALIAN BUREAU OF STATISTICS INTERNATIONAL TRADE IN GOODS AND SERVICES FOR OCTOBER

The trade surplus slipped to $105 million in October, its lowest level in six months. It was significantly lower than the $1.4 billion surplus the market had expected following September’s $1.6 billion surplus. The surprise decline was the result of lower exports and increased consumption-led imports, economists said.

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AUSTRALIAN BUREAU OF STATISTICS HOUSING FINANCE FOR OCTOBER

October housing finance approvals, worth a total of $32.5 billion, surpassed market expectations. The value of investor loan approvals rose 1.6 per cent to $11.96 billion, while the value of owner-occupier approvals was flat at $20.55 billion.