Consumer reaction to RBA exposure | So Good News
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New indicators will shed more light on Australian consumer spending and confidence as the central bank battles rising inflation.
Housing costs have been a source of uncertainty for the Reserve Bank, which has been raising interest rates in an effort to curb inflation.
Spending remains strong despite consumer confidence, but there is some evidence that consumers are beginning to respond to higher interest rates.
Key barometers to watch this week include the Australian Bureau of Statistics’ household income index and CommBank’s housing consumption report. Both reports are due Tuesday.
Two consumer confidence options will also be released that day. There will be a monthly report from Westpac and the Melbourne Institute, and a weekly survey from ANZ and Roy Morgan.
NAB will also release its business survey on Tuesday.
There will also be other labor market releases: ANZ’s October job posting figures will be released on Monday and the ABS will release labor account information on Wednesday.
The Bureau of Statistics will release figures for monthly business returns and building permits on the same day.
The trial of the budget estimate will continue during the week when the Treasury and finance officials will be forced to spend money in their departments.
Reserve Bank deputy governor Michele Bullock is expected to speak on the economy.
The speech is likely to be based on economic forecasts released last week in the RBA’s monetary policy statement.
The bank lowered its growth forecast since its last survey in August and forecast inflation to be higher.
US stocks rose on Friday as investors gauged rising unemployment, which could lead to the Federal Reserve delaying interest rate hikes.
The Dow Jones Industrial A average rose 401.97 points, or 1.26%, to 32,403.22, while the S&P 500 gained 50.66 points, or 1.36%, to 3,770.55.
The technology-heavy Nasdaq Composite index rose 132.31 points, or 1.28 percent, to 10,475.25.
Australian futures rose 91 points, or 1.32 percent, to 6976.
The region’s share market ended last week, boosted by strong performance from the energy sector.
The benchmark S&P/ASX200 index ended Friday up 34.6 points, or 0.5 per cent, to 6892.5, while the All Ordinaries majority gained 38.7 points, or 0.55 per cent, to 7089.3.