REIV Member Login








Forgotten your password?

Not a member? Join here >>


Login / Join

Property Research



Share this Page with a Friend

 

$name

Categories

  1. Interest rates 
  2. GDP 
  3. Consumer price index
  4. Consumer sentiment
  5. Labour market

Interest Rates

Following the Reserve Bank meeting in July 2014, the cash rate was left on hold at 2.50 per cent for the eleventh consecutive month. There was little change in the RBA’s stance on the economy, as the Bank continues to expect growth to be slightly below trend in the short term. On the other hand, continued accommodative monetary policy should help boost demand and strengthen growth in the foreseeable future. As such, the RBA continues to expect stable interest rates for a period of time, given that the recovery in unemployment is slow and inflation is expected to be within the target of 2-3 per cent.

Source: Reserve Bank of Australia

Chart.
Chart.

GDP

The Australian economy grew by 0.8 per cent over the quarter in trend terms compared to 0.9 per cent in the previous quarter. As a result, the economy grew notably by 3.2 per cent over the year compared to 2.8 per cent in the previous quarter in trend terms. It also grew in seasonally adjusted terms by 1.1 per cent. The growth in this quarter, in seasonally adjusted terms, was mainly driven by mining (up 8.6 per cent), financial and insurance services (a 2.8 per cent increase) and construction (a 3.0 per cent rise). Victoria’s State Final Demand (SFD) in seasonally adjusted terms also grew by 1.8 per cent over the year and rose 0.7 per cent over the March quarter 2014.

 

ABS cat. 5206

 

Chart.
Period: 

Consumer Price Index

The annual rate of inflation for Melbourne increased significantly for the fourth consecutive quarter to 3.2 per cent in June quarter 2014 compared to 2.8 per cent in the previous quarter. This is higher than the national level of inflation of 3.0 per cent. The largest increases to Melbourne’s CPI over the quarter were from clothing and footwear (+4.4 per cent), health (+2.8 per cent rise) and, alcohol and tobacco (+2 per cent). Of the eight capital cities, the housing sub-component for Melbourne rose the most by 1.3 per cent over the quarter due to the increase in new dwelling purchases by owner-occupiers.

Source: ABS cat. 6401.0

Quarter  Melbourne CPI (All Groups) Australia CPI (All Groups)
Dec-2012

102.0

102.0

Mar-2013

102.4

102.4

Jun-2013

102.6

102.8

Sep-2013

104.0

104.0

Dec-2013

104.8

104.8

Mar-2014

105.3

105.4

Jun-2014

105.9

105.9

 

Chart.
Chart.

Consumer Sentiment

The National Westpac - Melbourne Institute Index of Consumer Sentiment rose by 1.9 per cent to 94.9 in July 2014 from 93.2 in the previous month. The index marks an improvement from the low in May 2014 but is yet to reach its pre-budget level with its recovery being slower than in 2013. The consumer sentiment index rose as a result of an increase in all the subcomponents except for the ‘time to buy a major household item’ and that reflecting the five year outlook for the economy. There was also improved optimism surrounding the economy and finances from post budget levels.

The consumer sentiment index for Victorian consumers rose by 6.8 per cent to 97.8 in July 2014, having decreased by 2.5 per cent in June (a delayed reaction to the budget). This was due to increases in four of the five subcomponents, where the largest increases were from 'family financial conditions vs a year ago' (up 19.6 per cent) and 'family financial conditions in the next 12 months' (up 16.5 per cent). Following a large 8.2 per cent increase in June, the Victorian Time to Buy a Dwelling index rose by a slight 0.2 per cent in July.
Source: Westpac - Melbourne Institute

Chart.
Period: 

Labour Market (Victoria)

As of June 2014, Victoria’s unemployment rate in trend terms remained stable at 6.4 per cent from the previous month. However, it increased in seasonally adjusted terms to 6.5 per cent from 6.2 per cent in May. At the national level, the unemployment rate remained stable at 5.9 per cent in trend terms and fell slightly from six per cent to 5.9 per cent in seasonally adjusted terms. 

Source: ABS cat. 6202.0

Chart.
Period: 
  • Register to receive weekly sales updates:
  • Register Now
  • Subscribe to our RSS Feed:
  • Subscribe Now