The Australian Bureau of Statistics had released the key numbers related to the Building Approvals, Australia. As per the release which was out, the total dwelling units (on trend estimate basis) which have been approved stood at 14,875 in December 2018 which implies the fall of 4.1% as compared to November 2018. However, as compared to December 2017, it represents the fall of -24.7%. The release reflected that seasonally adjusted estimate for the total dwelling units which have been approved stood at 13,995 which reflects the fall of 8.4% as compared November 2018. While as compared to December 2017, it reflects the fall of 22.5%.
The seasonally adjusted estimate for the private sector houses stood at 9,134 in December 2018 which reflects the fall of 2.2% as compared to November 2018. However, as compared to December 2017, the number implies the fall of 11.3%. The trend estimates for the private sector dwellings (excluding the houses) stood at 5467 in December 2018 which implies the fall of 8.5% as compared to November 2018. However, as compared to December 2017, the number reflects the fall of 41.2%.
There is other important news which the Australian investors should be aware of. Recently, the central bank of Australia, i.e. Reserve Bank of Australia had conducted a meeting in which it had left the cash rate unchanged. Presently, the cash rate happens to be 1.50%. Also, the final report of The Royal Commission had also been released. In the statement which was made by Mr. Philip Lowe, there was some information related to the labour market. The statement reflected that the labour market happens to be strong and the unemployment rate is 5%. The release also had some vital information on the conditions of housing markets. It reflected that housing markets in Sydney, as well as Melbourne, have been encountering the period of adjustment. The credit conditions for some of the borrowers have been strict.
The unemployment rate is expected to decline further to 4¾% in the span of the next few years. The release also added that the stronger labour market had positively impacted wages growth. The improvement with regards to the labour market might further positively impact the wages growth moving forward, although, there are expectations that it would be a gradual process.
Talking about the US markets, the investors are focusing on the earnings reports of the companies even though they have maintained their focus on the trade tensions between the US and China. The trade war should end as soon as possible for the benefit of the global economy. The market participants are having a fear related to the global economic slowdown in their mind. Moreover, the settlement of the trade dispute would also support the sentiments of global investors, and it might positively impact the broader stock markets. Moreover, it can be said that the performance of the broader Australian economy would also be sensitive to the performance of the global economy.
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