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Personal insolvencies fall 21%😶🧧🔽

In another sign of Australia's strengthening economy, personal insolvency numbers have fallen significantly over the past year.

A total of 700 people entered into a formal personal insolvency in April, according to the Australian Financial Security Authority, compared to 884 the year before – a reduction of 21%

During the past year, unemployment has fallen, personal wealth has increased and savings rates have been at historically high levels.

At the same time, mortgage borrowers have used offset accounts and redraw facilities to get well ahead on their home loan repayments. The median borrower with a variable-rate loan is 21 months ahead, according to the most recent data from the Reserve Bank.

#property #realestate #homeloans
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Personal insolvencies fall 21%😶🧧🔽In another sign of Australias strengthening economy, personal insolvency numbers have fallen significantly over the past year.A total of 700 people entered into a formal personal insolvency in April, according to the Australian Financial Security Authority, compared to 884 the year before – a reduction of 21%During the past year, unemployment has fallen, personal wealth has increased and savings rates have been at historically high levels.At the same time, mortgage borrowers have used offset accounts and redraw facilities to get well ahead on their home loan repayments. The median borrower with a variable-rate loan is 21 months ahead, according to the most recent data from the Reserve Bank.#property #realestate #homeloans

Workers get 2.4% annual raise in March Qtr 2022

Wages growth has increased for the fifth consecutive quarter, according to the latest data from the Australian Bureau of Statistics.

Average wages in the March quarter were 2.4% higher than the year before, continuing the trend of slowly increasing wages growth:

* Dec 2020 = 1.4%
* Mar 2021 = 1.5%
* Jun 2021 = 1.7%
* Sep 2021 = 2.2%
* Dec 2021 = 2.3%
* Mar 2022 = 2.4%

Unfortunately, inflation is currently running at 5.1%, so while workers’ incomes have been increasing in headline terms, they’ve actually been going backwards in real terms.

LMS Takeaway
Labour's campaigning during the election was to focus on real wages growth by supporting higher minimum wages.
Now that they are in government, we are interested to see how they will enact this policy without sending inflation spiraling upwards further. Any wages growth should be linked to productivity targets and increases to GDP Growth to manage the impact on the small business community who are the major employers in Australia, still doing it tough coming out of the pandemic.

#money #personalfinance #jobs
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Workers get 2.4% annual raise in March Qtr 2022Wages growth has increased for the fifth consecutive quarter, according to the latest data from the Australian Bureau of Statistics.Average wages in the March quarter were 2.4% higher than the year before, continuing the trend of slowly increasing wages growth:* Dec 2020 = 1.4%
* Mar 2021 = 1.5%
* Jun 2021 = 1.7%
* Sep 2021 = 2.2%
* Dec 2021 = 2.3%
* Mar 2022 = 2.4%Unfortunately, inflation is currently running at 5.1%, so while workers’ incomes have been increasing in headline terms, they’ve actually been going backwards in real terms.LMS Takeaway
Labours campaigning during the election was to focus on real wages growth by supporting higher minimum wages.
Now that they are in government, we are interested to see how they will enact this policy without sending inflation spiraling upwards further. Any wages growth should be linked to productivity targets and increases to GDP Growth to manage the impact on the small business community who are the major employers in Australia, still doing it tough coming out of the pandemic.#money #personalfinance #jobs

Unemployment falls to 3.9% 📉🏆

Australia’s unemployment rate fell to 3.9% in April, its lowest level since 1974.

Between March and July 2020, when the pandemic was at its peak, unemployment jumped from 5.2% to 7.5%. Since then, as the graph shows, unemployment has trended down.

Since July 2020, the number of employed people has risen 932,000, while the number of unemployed people has fallen 472,300.

Meanwhile, the underemployment rate has also steadily decreased during that time, from 11.2% in July 2020 to 6.1% now.

#economy #money #jobs
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Unemployment falls to 3.9% 📉🏆Australia’s unemployment rate fell to 3.9% in April, its lowest level since 1974.Between March and July 2020, when the pandemic was at its peak, unemployment jumped from 5.2% to 7.5%. Since then, as the graph shows, unemployment has trended down.Since July 2020, the number of employed people has risen 932,000, while the number of unemployed people has fallen 472,300.Meanwhile, the underemployment rate has also steadily decreased during that time, from 11.2% in July 2020 to 6.1% now.#economy #money #jobs

RBA signals more rate rises are on the way ↗️🕓

The Reserve Bank of Australia has released the minutes from its recent monetary policy meeting, which indicate that it expects to make several more rate rises this year.

Earlier this month, the RBA increased the cash rate from 0.15% to 0.35% (see graph), to help subdue underlying inflation, which is now higher than the RBA’s target range of 2-3%.

According to the minutes, the RBA expects underlying inflation to return to the target range by mid-2024 – but these forecasts are “based on a technical assumption of the cash rate increasing to around 1.75% by the end of 2022 and around 2.5% by the end of 2023”.

As a result, there’s a reasonable chance the RBA will increase the cash rate by either 0.25 percentage points or 0.40 percentage points at its next meeting, on June 7.

LMS Takeaway:
Rising interest rates will be a huge challenge for the incoming Albanese Government.
Their policy announcements tended towards increasing government spending and larger budget deficits. This will add local inflationary pressures to the volatile global economy.
They start day one with strong economic foundations for the country such as historically low unemployment.

#property #realestate #homeloans
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RBA signals more rate rises are on the way ↗️🕓The Reserve Bank of Australia has released the minutes from its recent monetary policy meeting, which indicate that it expects to make several more rate rises this year.Earlier this month, the RBA increased the cash rate from 0.15% to 0.35% (see graph), to help subdue underlying inflation, which is now higher than the RBA’s target range of 2-3%.According to the minutes, the RBA expects underlying inflation to return to the target range by mid-2024 – but these forecasts are “based on a technical assumption of the cash rate increasing to around 1.75% by the end of 2022 and around 2.5% by the end of 2023”.As a result, there’s a reasonable chance the RBA will increase the cash rate by either 0.25 percentage points or 0.40 percentage points at its next meeting, on June 7.LMS Takeaway:
Rising interest rates will be a huge challenge for the incoming Albanese Government.
Their policy announcements tended towards increasing government spending and larger budget deficits. This will add local inflationary pressures to the volatile global economy.
They start day one with strong economic foundations for the country such as historically low unemployment.#property #realestate #homeloans

Home building approvals trending down 📉😓

Home building approvals fell 18.5% in March compared to the month before, according to the latest data from the Australian Bureau of Statistics.

As the graph shows, approval numbers are volatile and bounce around a lot, so the more relevant measure is the long-term trend.

Since a record 23,586 approvals were issued in March 2021, the figure has been trending down, with 15,183 approvals issued in March 2022 – 35.6% lower than the year before.

That suggests fewer new properties will be built in the future. That, in turn, will place upward pressure on prices, as the lower the supply of housing stock, the greater the demand.

#property #realestate #homeloans
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Home building approvals trending down 📉😓Home building approvals fell 18.5% in March compared to the month before, according to the latest data from the Australian Bureau of Statistics.As the graph shows, approval numbers are volatile and bounce around a lot, so the more relevant measure is the long-term trend.Since a record 23,586 approvals were issued in March 2021, the figure has been trending down, with 15,183 approvals issued in March 2022 – 35.6% lower than the year before.That suggests fewer new properties will be built in the future. That, in turn, will place upward pressure on prices, as the lower the supply of housing stock, the greater the demand.#property #realestate #homeloans
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