- December 6, 2022
- Posted by: AliensFaith
- Category: OBJECTIVE PRESS
No Comments
Advertisements
Westpac response to the data from Australia earlier today.
The data ICYMI:
Westpac’s note is detailed, but just a few key points, beginning with the kicker:
- the Australian economy is in transition. Earlier tailwinds are fading, and the impacts of high inflation and higher interest rates are beginning to become apparent. A sharp economic slowdown is in prospect for 2023.
WPAC see the strong household spending result as the re-opening effect from H1 leaked in Q3.
- hours worked expanded by only 0.1%
- Supply constraints are a factor, with the economy bumping up against capacity constraints. In addition, in the September quarter, there was elevated sick leave (around covid) and elevated levels of annual leave.
—
I have seen takes that say the still-high level of household saving will be a cushion going forward, a support for domestic demand well into next year. The household saving level did drop back, but is still roughly double the pre-COVID level.
—
I posted earlier on the USD losing some ground. AUD/USD is back where it started though:
This article was written by Eamonn Sheridan at forexlive.com.