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)


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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