Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The Australian Annual National Accounts released by the ABS today show that the size of the economy has reached over $1.8 trillion, reflecting a 2.8 per cent increase in 2017-18. This is up from the $1.2 trillion in 2007-08 in nominal terms. Household consumption is a large part of the story, contributing 1.6pp though with … Continue reading “Australian Economy Reaches over $1.8 trillion; Thanks To Households”
RBA Assistant Governor, Financial System, Michele Bullock discussed household debt in a recent speech. She concludes that “Household debt in Australia has risen substantially relative to income over the past few decades and is now at a high level relative to international peers. This raises potential vulnerabilities in both bank and household balance sheets. While … Continue reading “The RBA On The Evolution of Household Sector Risks”
Welcome to the Property Imperative weekly to 8th September 2018, our digest of the latest finance and property news with a distinctively Australian flavour. And by the way, if you value the content we produce please do consider joining our Patreon programme, where you can support our ability to continue to make great content. Watch … Continue reading “Reaping The Whirlwind – The Property Imperative Weekly 08 Sept 2018”
Despite the “good news” from the GDP numbers yesterday, our latest mortgage stress report, to end August 2018 continues to track higher. The latest RBA data on household debt to income to March reached a new high of 190.1[1]. On Tuesday, the RBA said ”One continuing source of uncertainty is the outlook for household consumption. … Continue reading “Mortgage Stress Continues To Build In August 2018”
The Australian economy grew 0.9 per cent in seasonally adjusted chain volume terms in the June quarter 2018, according to figures released by the Australian Bureau of Statistics (ABS) today. New dwelling investment continued to prop up the numbers, along with government and domestic consumption. But the two key, and concerning trends are a significant … Continue reading “Economy grew 0.9 per cent in June quarter”
From The Conversation. If you were going to reduce a 150-page Productivity Commission examination of trends in Australian inequality to a few words, it would be nice if they weren’t “ALP inequality claims sunk”, or “Progressive article of faith blown up” or “Labor inequality myths busted by commission”. The editorial in the Australian Financial Review … Continue reading “Don’t believe what they say about inequality”
From The Conversation. This is longer than the usual Conversation article, so allow some time to read and enjoy. The crisis really is in real wage growth. – Reserve Bank Governor Philip Lowe, 2017 Increased inequality and low wage growth are constraining economic growth. But why is wage growth so low? And how should policymakers … Continue reading “This is what policymakers can and can’t do about low wage growth”
An increasing number of Australians are struggling with the cost of living, dipping into their short-term savings just to get by, ME Bank’s latest Household Financial Comfort Report says, via The New Daily. The biannual survey released Monday asked 1500 people to rate their household comfort for the first half of 2018, showing short-term cash savings to be … Continue reading “Households dipping into savings to pay for basics: ME Bank”
From Nine.com.au. Single-parent families are experiencing a near-unprecedented level of housing stress as soaring house prices force many into unaffordable rental properties. Analysis conducted by the Melbourne Institute as part of its annual HILDA survey revealed over 20 percent of single-parent families are stretching their budgets further than ever to keep up with annual rent … Continue reading “HILDA Data Confirms Household Financial Pressure”
When we released our mortgage stress report for June 2018, we said that the number of households exposed to risks is rising, and if rates were to increase then around 1 million of households will fall into stress and some may default, up from 970,000 now. scrollings=”no” The RBA minutes yesterday focussed in … Continue reading “Mortgage Stress And Defaults – Alternative Scenarios”