Both business and consumer sentiment is poor and this is affecting our economy and interest rate outlook.
In this video Westpac Senior Economist Elliot Clarke comments on the release of the NAB business survey as well as the Westpac: Melbourne Institute Survey of Consumer Sentiment.
We also hear about labour market expectations and the housing time-to-buy measure. 61% of respondents expected house prices to rise, but more modestly over the next year.
Watch and learn about some of the macroeconomic factors affecting our property markets:
A forecast of the likely pace of economic growth has lifted above trend for the first time in more than a year, as consumer sentiment lifts in the wake of the Reserve Bank’s interest rate cut last month.
The Westpac-Melbourne Institute leading index, which indicates the likely pace of economic growth three to nine months into the future, lifted from — 0.32 per cent in January to +0.45 per cent in February.
After showing persistently weak, sub-trend momentum over the last 12 months, the index has returned a positive result.