Is the Australian Economy in Good Shape or Bad Shape?
15 Reasons why some Australians might be gloomy:
1 Investors who lost a significant share of the investments and superannuation
2. Retirees are so scared of the markets that they are chasing term deposits, which do not generate enough return to ensure their nest eggs will grow sufficiently.
3. Business confidence is way below trend. Manufacturing is at a three-year low and shrinking.
4. Business loan interest rates are at high levels and loan availability is extremely low.
5. Europe scares us..
6. Talk of a China hard landing comes through regularly.
7. The carbon tax is looming and rising power bills will surge further.
8 The high dollar hurts exporters, tourism operators and local import competitors, however enables consumers to buy cheaper goods
9. Retailers are battling the internet; and they have to charge the GST, unlike foreign rivals.
10 House prices have been falling for many homeowners.
11. Petrol prices are historically high.
12. National growth numbers were unbelievably good, but NSW grew at 0.7 per cent and Victoria at 2.6 per cent.
13 Consumer confidence remains negative.
14. Leadership in Canberra could be better.
15. The media are scaremongers
10 reasons why we can be positive about our economy
1. Inflation of 1.6 per cent.
2. Over the three months to May, employment rose by 60,400 and the unemployment rate was 5.1 per cent.
3. he economy grew at a historically strong 4.3 per cent.
4. Car sales are up 22.4 per cent on a year ago.
5. The weekly Roy Morgan consumer confidence rose by 1.8 points to 110.8 points. Consumer confidence rose for four out of the previous five weeks.
6. Total lending finance rose by 6.3 per cent in April after rising by 6.1 per cent in March.
7. New homes sales lifted by 6.9 per cent in April but this was a partial rebound from March when sales slumped 9.4 per cent.
8. The RBA has come to its senses and is cutting interest rates.
9. New business investment rose 6.1 per cent in the March quarter, ahead of forecasts of 3 per cent.
10. The number of tourists arriving in March rose by 1.9 per cent to record highs. This fell by 0.5 per cent in April.
So, what do you think?
Are we in good shape or bad shape?
Feel free to comment below!