Opinion

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



Drink and drug drivers: Heavy price for risking it

You can be caught anywhere, any time.

Man cops 18-month ban for drink driving

Life after racing: Greyhounds need loving homes

CAN YOU HELP: Brookwater resident Emee Botha with her greyhound, Schnuki.

Dog adoption group at crisis point

James Hardie boss devastated by work death

Ambulance with lights on

Photo Tony Martin / Daily Mercury

A MAN in his 60s has died in an industrial accident.

Local Partners

Shot at the live shows slips through Sally's fingers

SUNSHINE Coast singer's dramatic elimination from The Voice nearly saw her form a duo with her battle round opponent.

Ben Stiller and Christine Taylor split after 17 years

They were married in May 2000 and have two children, who they said will remain their priority.

Ben Stiller and his wife Christine Taylor have called it a day

Why The Voice hasn't produced a star

Boy George responds to Brittania Clifford-Pugh's heart-warming message.

It's the industry, not the show, says Boy George

These actors hated their movies and didn’t mind admitting it

Channing Tatum and Marlon Wayans in a scene from GI Joe: The Rise of Cobra.

Every year, Hollywood blesses us with plenty of God awful movies.

Miranda Kerr and fiance hang up backyard tent for wedding

The decorators and caterers are arriving for the final preparations for the wedding of Miranda Kerr and Evan Spiegel. Pictures: Splash

Evan Spiegel and Miranda Kerr are set to marry today

Book review: Mia Freedman's book meets her critics head on

I appreciated Freedman's blunt honesty in the book

Man's amazing comeback from monster crisis

Pat O'Driscoll agents Penny Keating and Doug Webber sold 56 Agnes St, The Range at auction over the weekend.

NOT long ago, he sold his possessions to pay staff. Now he's back.

Report reveals progress on $319m airport upgrade

Aerials of the Sunshine Coast.Jetstar plane in front of the Susnhine Coast terminal, Sunshine Coast Airport.

Over two dozen government approvals needed for airport expansion

Lost dough leaves sour taste after company collapse

Kathleen and John Mahoney from Sugar and Spice Bakery were stung after the collapse of Cantro Pty Ltd and are still owed money.

Supermarket operator collapse leaves sour taste for bakery

'Ridiculous': Council refuses renovation at heritage home

NOT FAIR: Karen Solomon of Newtown is angry with Ipswich City Council for refusing her plans to build a colonial style double car port at her Newtown home.

Council rejected development application

Council refusal of 'high density' development ends in court

Ipswich City Council first meeting with the new 2016 council.

Developer took the matter to the Queensland Planning Court

Ready to SELL your property?

Post Your Ad Here!