Australian economic events and implications

AMP Capital

AMP Capital

Australian data was mostly good last week. New home sales fell 5% in February and remain in a downtrend consistent with slowing building approvals. Home prices rose modestly in March, with ongoing confirmation of a loss of momentum compared to last year. Job vacancies are at levels consistent with solid employment growth and AIG’s manufacturing conditions PMI rose to a booming 58.1 - the Australian manufacturing PMI is amongst the highest in the world, a testament to the boost provided by the fall in the Australian dollar since 2011. The qualifier is that it’s likely dependent on the Australian dollar remaining low in contrast to its recent rebound. The loss of momentum in the national average house price is clearly due to Sydney which has really come off the boil. A further slowing is likely ahead with a modest cyclical decline in prices likely around 2017-18. In the absence of significant rate hikes or a recession, it’s still hard to see a property crash. See the full weekly update: (VIEW LINK)


2 topics

AMP Capital is one of the world's leading investment houses, with a 160-year pioneering heritage. Our enviable track record in real estate and infrastructure is coupled with deep expertise in fixed income, equities and multi-asset investments.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.