Useful Facts Without Opinions: Consumer confidence and employment
Buying a home or investment property usually includes a big lump of a bank loan and an on-the-knees visit to the bank manager. So when Australians are feeling good about the economy and particularly their own job security, they are naturally happier to take that step and the burden of more debt. For us these two issues are key ones to watch when anyone’s attempting to forecast real estate price trends. Consumer confidence is surveyed by lots of organisations on an almost weekly basis but here’s some of the latest:
• The Westpac-Melbourne Institute Survey of Consumer Confidence for May has shown that for the first time since February, this index has a positive reading. It is the highest reading since January last year.
• The weekly ANZ/Roy Morgan consumer confidence rating rose by 2.1 per cent to 114.5 in the week to June 14. Confidence is up 10.9 per cent over the year and up on the average of 111.4 since 2014. “…if you take a longer-term perspective, confidence is up on a year ago, up on the short-term average reading and up on the long-term average.” Commsec Economic Insights June 16th
• “Measures of consumer sentiment had picked up noticeably in May to be a bit above average. Much of this had been attributed to the Australian Government Budget and, in particular, the announcement of tax concessions for small businesses.”: Minutes of the Reserve Bank board meeting, June 16th
• “Unemployment has fallen to a one-year low of 6 per cent in May as an estimated 42,000 jobs were added to the economy last month. In a strong set of jobs numbers, the Bureau of Statistics estimated that full-time employment rose by 14,700, while the number of part-time workers increased by 27,300.” ABC News 11th June
• Unemployment Rate in Australia averaged 6.90 percent from 1978 until 2015, reaching an all time high of 10.90 percent in December of 1992 and a record low of 4 percent in February of 2008. Unemployment Rate in Australia is reported by the Australian Bureau of Statistic.
How does this read to you? Positive or negative impact for Brisbane home prices? Please share your comments.