As one of Australia’s most respected bodies, the Reserve Bank certainly gets people’s attention when it has something to say.
And what is the RBA saying? Some pretty positive things about WA and the Australian economy – that’s what.
In its recent quarterly statement on monetary policy, the RBA has reinforced what we’ve been hearing in WA in recent months: things are turning for the better in the local economy and housing market.
The RBA says that economic conditions are starting to stabilise in WA and that business conditions and confidence have risen. Improvements in confidence, economic conditions and the unemployment rate are some of the main things that encourage people to buy property.
On jobs, it points out that employment conditions in WA have also improved since late 2016, with a significant turnaround in full-time employment. This is in line with figures released by the Australian Bureau of Statistics in recent months showing that WA is at the top of the pile when it comes to jobs growth.
The RBA is optimistic about jobs in Australia for the remainder of 2017. “Information from leading indicators, such as job advertisements and vacancies, indicates solid employment growth over the second half of 2017, following stronger-than-expected growth over the first half of the year.”
It adds that there are promising indications that consumers will loosen their purse strings in the coming quarters, following the recent growth of Australian retail sales in a range of areas.
For the curious who like to dig deeper, consumer expenditure rose in June 2017 in the following areas: household goods (0.9%), food retailing (0.2%), other retailing (0.5%), cafes, restaurants and takeaway food services (0.4%), clothing, footwear and personal accessory retailing (0.2%), and department stores (0.3%).
We can only hope that when it delivers its budget, the WA State Government will take note of the improving economic climate in the West and introduce measures that further advance consumer, investor and business confidence.