State’s economy may be slowing but wage increases, business investment still shine
Queensland’s economy was slowing and below trend, but there were still some surprising bright spots, according to the ANZ Bank’s Stateometer.
ANZ Boss Shayne Elliott (Image: AAP)
The decline in the June quarter was caused by declines in housing, consumer and trade components which were largely the same in all states.
However ANZ pointed out that the ABS national accounts data highlighted Queensland’s strength over the past year with growth well above the national average buoyed by Government spending.
It said business activity was strong in Queensland with NAB’s August business survey showing with growth well above the national average.
“This is despite a softening in commodity prices that has dampened Queensland’s goods exports, down 24 per cent year-on-year in July,” the bank said.
However, household spending was flat, which is never a good sign for retail.
“Wage growth outpaces the national rate, despite the unemployment rate being higher than the national average,” ANZ said.
House prices were also up compared to the combined capitals.
The strong population growth was also exerting pressure on the rental market.
Nationally, the ANZ said households were still cutting back on spending and there were signs that the jobs market was starting to turn down from a very strong starting point.
“We believe the RBA is on an extended pause. However, if the RBA does move in the near term we think rate rises were more likely than cuts. Any monetary easing is a long way off.”
