Data suggests next economic move will be upwards

Brett Kitching
Brett Kitching

DATA released last week further confirmed that the Australian economy is bumping along the bottom of the cycle after a couple of difficult years.

Having reached the bottom of the cycle, the next move in the normal economic cycle will be upwards, though the timing is still unclear.

The first piece of important news last week was the decision of the Reserve Bank of Australia (RBA) to hold interest rates at the existing level of 3.25%.

This decision on Melbourne Cup Day indicated the belief of the RBA that further interest rate cuts were not needed to further prop up the Australian economy.

The other item of note last week was the unemployment rate which remained steady at 5.4% according to the Australian Bureau of Statistics (ABS) figures for October.

Many economists expected a rise in unemployment for October and the better than expected jobless rate combined with the maintaining of the interest rate, both helped to promote the belief that the cyclical drop in the economy has ended.

The last interest rate drop by the RBA in October was based on the premise of the Global economic woes causing havoc in Australia in future. However since that short time, there is greater political stability in America after the election there, and Chinese output appears to be strengthening.

There are however continuing economic troubles in Europe with more and more suggesting that it will take several years to get through the debt crisis there.

What all of these things mean is that the Australian economy is still seen as a bright light worldwide and this perception along with interest rates higher than other developed countries continue to maintain the Aussie dollar at its lofty heights.

This of course continues to make travel overseas for Australians cost effective as well as creating great value for importers.

These indicators combine with recent data to promise much for the future of a region like Ipswich which has a growing population, a growing commercial and industrial base, and growing residential development. These factors all combine to promise an exciting future for Ipswich.

 

Upcoming events:

Nominations Open - 2013 Ipswich Chamber of Commerce & Industry Board. Completed nomination form and attachments to be received by the Chamber Office on or before 2.30pm this Friday. Ipswich Chamber of Commerce & Industry AGM followed by our final Networking After 5 event for 2012 - Tuesday, December 4 - Ipswich Club starting at 5pm. Free for members

Bookings and payment in advance is essential for all events.

Enquiries phone 3282 8688 or admin@ipswichchamber.org.au

Topics:  abs, brett kitching, chamber talk with brett kitching, interest rates, opinion, rba, unemployment rate




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