The lifeblood of employment and profit growth

No chart, but one statistic that explains the current state of the economy is final domestic demand up only 0.9% y-o-y in Q1 2016 compared with 3.1% y-o-y for GDP. Final domestic demand is the lifeblood for employment growth and company profit growth and is still growing sub-par relative to GDP; the latter boosted strong growth in export volumes but at a cost with export prices falling sharply. Persistently low growth in final domestic demand explains why employment growth has slowed; why full-time employment is falling; why wages growth is very low; and why so many Australian companies are experiencing low or no earnings growth. For an explanation of Final Domestic Demand, click here: (VIEW LINK) (Stephen Roberts, Chief Economist)
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Altair Asset Management (Altair) is a high conviction, active Australian equities manager whose investment philosophy is based on understanding the drivers and impact of change. Altair applies macro thematic research to uncover trends which are...
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Altair Asset Management (Altair) is a high conviction, active Australian equities manager whose investment philosophy is based on understanding the drivers and impact of change. Altair applies macro thematic research to uncover trends which are...
Expertise
No areas of expertise