Opinion

Data suggests next economic move will be upwards

Brett Kitching
Brett Kitching

DATA released last week further confirmed that the Australian economy is bumping along the bottom of the cycle after a couple of difficult years.

Having reached the bottom of the cycle, the next move in the normal economic cycle will be upwards, though the timing is still unclear.

The first piece of important news last week was the decision of the Reserve Bank of Australia (RBA) to hold interest rates at the existing level of 3.25%.

This decision on Melbourne Cup Day indicated the belief of the RBA that further interest rate cuts were not needed to further prop up the Australian economy.

The other item of note last week was the unemployment rate which remained steady at 5.4% according to the Australian Bureau of Statistics (ABS) figures for October.

Many economists expected a rise in unemployment for October and the better than expected jobless rate combined with the maintaining of the interest rate, both helped to promote the belief that the cyclical drop in the economy has ended.

The last interest rate drop by the RBA in October was based on the premise of the Global economic woes causing havoc in Australia in future. However since that short time, there is greater political stability in America after the election there, and Chinese output appears to be strengthening.

There are however continuing economic troubles in Europe with more and more suggesting that it will take several years to get through the debt crisis there.

What all of these things mean is that the Australian economy is still seen as a bright light worldwide and this perception along with interest rates higher than other developed countries continue to maintain the Aussie dollar at its lofty heights.

This of course continues to make travel overseas for Australians cost effective as well as creating great value for importers.

These indicators combine with recent data to promise much for the future of a region like Ipswich which has a growing population, a growing commercial and industrial base, and growing residential development. These factors all combine to promise an exciting future for Ipswich.

 

Upcoming events:

Nominations Open - 2013 Ipswich Chamber of Commerce & Industry Board. Completed nomination form and attachments to be received by the Chamber Office on or before 2.30pm this Friday. Ipswich Chamber of Commerce & Industry AGM followed by our final Networking After 5 event for 2012 - Tuesday, December 4 - Ipswich Club starting at 5pm. Free for members

Bookings and payment in advance is essential for all events.

Enquiries phone 3282 8688 or admin@ipswichchamber.org.au

Topics:  abs brett kitching chamber talk with brett kitching interest rates opinion rba unemployment rate


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Ups and downs in NBN quest to leave no home behind

Toowoomba's David Shinners and his son Hugh and wife Julie find online life easier with the NBN.

Faster broadband means fewer people will leave the regions for work.

Our love affair with the internet is growing

Gympie West's Micah, Kathy, Rob and Mitchell Pitt, with their dog Winston, enjoying their devices through the National Broadband Network.

We do it in bed, at work, in the kitchen ... and on the loo.

Waiting for NBN: what you need to do next

NBN's "check your address” feature shows the Rockhampton Morning Bulletin office should be able to connect to the National Broadband Network from January 2017.

Find out where your region is at with the NBN rollout.

Local Partners

New doco argues ‘OJ Simpson is innocent, and I can prove it’

O.J. Simpson

NEW documentary series claims to have found “missing evidence".

REVIEW: Undressed is more than titilating entertainment

Nathan and Tahlia meet for the first time on the TV series Undressed.

'DIVERSE' dating show goes more than skin deep.

Will there be a Game of Thrones spin-off?

Emilia Clarke and Peter Dinklage in a scene from season six episode 10 of Game of Thrones.

HBO’S original programming president has teased fans.

Ed Sheeran's intimate gigs down under

Singer Ed Sheeran

CHART-topper playing invite-only shows in Australia next month.

Eddie McGuire's scandal-free focus and new-look Hot Seat

Eddie McGuire hosts the new Millionaire Hot Seat Super Game.

HOST wants out of the hot seat himself to focus on game show revamp.

Embattled Amber Sherlock back on TV after leaked video

Amber Sherlock seems to have brushed off the leaked video

Historical home leaves family's hands after 75 years

SALE CONFIRMED: The Gympie Regional   Realty team which sold the Ramsey property are (back) Mel Gastigar, Dorothy Palmer and Margaret Cochrane, with (front) home seller Terri-Jayne Ramsey.

Ramsey family played a huge role in Gympie's growth.

Pat Rafter's $18m Coast home proves hot property

PAT'S PAD: The Sunshine Beach home of tennis ace Pat rafter is on the market for a record price.

"It's a record for our company and for the Sunshine Coast.''

INTERACTIVE MAP: Which Northern Rivers towns boomed in 2016?

BOOM TOWNS: While Ballina properties continued to attract top dollar in 2016, it was areas to the south that experienced price hikes, including Wardell, Evans Head and Woodburn.

Click on our map to find the median sale price in your town

Fincal Verdict: Rent or Buy?

Housing generic.

Australia's love affair with property seems to know no end

Ready to SELL your property?

Post Your Ad Here!